GST Scam: Govt identifies over 30k fraud firms ; takes strict action

Second highest GST worth Rs 1.72 lakh crore recorded in October 2023

GST Scam: Govt identifies over 30k fraud firms ; takes strict action

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On January 7, the government declared that during the eight months preceding December 2023, 29,273 fraudulent firms had been discovered by GST officers, submitting false claims for Input Tax Credit (ITC) totaling Rs 44,015 crore. 

This discovery was made in the midst of a determined attempt to stop fraudulent registration. Rs 4,646 crore in revenue has been saved as a result of the actions taken against these dishonest companies. What’s more, the move demonstrates the Center’s dedication to stopping tax evasion and upholding the integrity of the Goods and Services Tax (GST) regime.

Authorities discovered 4,153 fraudulent companies during the October–December quarter that were allegedly involved in ITC evasion, with a combined value of about Rs 12,036 crore. Of these identified fake companies, 2,358 were found thanks in part to the efforts of the Central GST Authorities.

Maharashtra topped the list of states with 926 bogus firms found in attempts to identify and deal with suspected ITC evasion. After Maharashtra, Rajasthan (507), Delhi (483), and Haryana (424) are the other states with notable numbers of bogus firms found.

The identification of fraudulent companies implicated in alleged ITC evasion during the December quarter preserved revenue totaling Rs 1,317 crore. Of this, Rs 997 crore has been shielded by preventing ITC, and Rs 319 crore has already been realized. According to the finance ministry, 31 of the 41 people detained in relation to these cases were done so by the Central GST Authorities.