GST officials booked 8,000 cases in ITC frauds worth ₹35,000 crore during FY21








Central GST zones and the Directorate General of GST Intelligence (DGGI) have booked about 8,000 cases involving fake input tax credit (ITC) worth more than ₹35,000 crore during the last financial year. This was the result of a nationwide special drive against fake GST invoice scams launched on November 9, 2020, and is still ongoing, in light of the high proportion of fake ITC availment and utilisation.

During the financial year 2020-21, 426 persons, including 14 professionals such as chartered accountants, lawyers, masterminds, beneficiaries, directors, etc., were arrested, informed Ministry of Finance on Tuesday.

The ministry noted that the drive against fraudulent GST invoices slowed down over the past two-three months due to Covid-19 pandemic and subsequent lockdowns and restrictions. However, it has once again picked up pace with gradual lifting of lockdown and improved Covid-19 situation in different parts of the country, and the department has resumed efforts in coordinated action at national level

The crack-down by DGGI and all CGST formations against those involved in ITC frauds has gained momentum during this July, the Finance Ministry said.

"In this nationwide drive against unscrupulous entities, Directorate General of GST Intelligence and CGST zones under CBIC have during the current financial year detected more than 500 cases involving 1,200 entities and arresting 24 persons. The number of arrests made by officers of CBIC is one of the highest in recent times," it said.

The ministry informed that CBIC officers are employing latest IT tools and digital evidence, as well as collecting information from other government departments to catch the fraudsters.

Along with legislative and procedural changes in the law, the nationwide drive has contributed to better compliance and revenue collection. During the drive, cases of fake ITC availment against some well-known companies were also booked, the ministry further added.

The enforcement drive against the fake invoice fraudsters and other GST evaders is likely to intensify with an objective to catch and book unscrupulous elements engaged in illegal activities to defraud the government exchequer," the Finance Ministry said. "Apart from cases of fake ITC the DGGI and other CGST formations have also detected GST evasion involving misclassification, undervaluation and clandestine supplies of goods and services.

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