DGGI detects more than 6,000 fake ITC cases with the arrest of 500 persons till September 2023

fake ITC

DGGI detects more than 6,000 fake ITC. Being the premier Intelligence and Investigation of GST tax evasion across the country, the Directorate General of GST Intelligence (DGGI) had initiated a Special Drive against the practice of claiming fake Input Tax Credit (ITC) to plug the leakage in Government revenue from November, 2020, and continues to check ITC evasion actively.

From April 2020 to September 2023, more than 6,000 fake ITC cases involving more than Rs. 57,000 crore GST evasion has been detected and a total of 500 persons have been arrested.

Since June 2023, DGGI has laid special emphasis to identify and apprehend the masterminds and disrupting syndicates, operating across the country.

Cases have been unraveled using data analysis aided by advanced technical tools which has lead to the arrest of tax evaders. These tax syndicates often use gullible persons and enticed them with job / commission / bank loan etc. to extract their KYC documents which were then used for creation of fake / shell firms / companies without their knowledge and consent.

Read Also : ICAI Representation on Mass SCN issued by GST Department in Sept

In some cases, KYCs were used with the knowledge of the concerned person by paying them small pecuniary benefits. In the current Financial Year 2023-24, a total of 1,040 fake ITC cases involving Rs. 14,000 crore has been detected with a total of 91 fraudsters have been apprehended till date.

In addition to employing its nationwide intelligence network to gather such information, the DGGI uses cutting edge data analytics technologies to produce intelligence, particularly in new areas of tax evasion, in order to combat the threat of GST evasion.

A voluntary payment of Rs. 14,108 crore has been made for the Rs. 1.36 lakh crore in total GST evasion (including bogus ITC) that has been found in FY2023–2024.

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