Fake ITC claims detection in FY24 rises 51% to Rs 36,374 cr

New Delhi: Fake input tax credit (ITC) claims detection by central GST (CGST) officers increased 51 per cent to Rs 36,374 crore in FY24, Minister of State for Finance Pankaj Chaudhary said on Monday.

He shared details of the fake ITC cases booked by Central Tax formations during the FY23 and FY24 in a written reply to the Lok Sabha. In FY24, 9,190 cases were booked by the CGST officers, involving fake ITC of Rs 36,374 crore, 182 persons were arrested and voluntary deposits of Rs 3,413 crore were made.

During FY23, Rs 24,140 crore fake ITC were detected in 7,231 cases, 152 persons were arrested and Rs 2,484 crore taxes were deposited voluntarily. The number of cases booked by central tax formation during FY22 was 5,966.

Chaudhary said the challenges in tracking fake ITC fraudsters relate to masterminds, who operate the fake ITC generation through control and management of a complex web of entities created across jurisdictions. “Such challenges are being met through coordination with multiple stakeholders, including law enforcement agencies,” he added.