Header Image

Over 25,000 Fake Firms Detected in GST ITC Fraud, ₹1,924 Crore Recovered in 2024-25

Over 25,000 Fake Firms Detected in GST ITC Fraud, ₹1,924 Crore Recovered in 2024-25

Last Updated Apr - 23 - 2025, 01:45 PM | Source : Fela News

GST officers have uncovered 25,009 fake firms involved in fraudulent ITC claims worth ₹61,545 crore in 2024-25. The government recovered ₹1,924 crore and made 1
Over 25,000 Fake Firms Detected in GST ITC Fraud, ₹1,924 Crore Recovered in 2024-25
Over 25,000 Fake Firms Detected in GST ITC Fraud, ₹1,924 Crore Recovered in 2024-25

In the 2024-25 fiscal year, Central and state GST officers uncovered 25,009 fake firms involved in fraudulent input tax credit (ITC) activities, amounting to ₹61,545 crore in fraud, officials reported. As part of their efforts, ₹1,924 crore was recovered through blocking ITC, and 168 individuals were arrested.

Between 2023-24 and 2024-25, a total of 42,140 fake firms were detected, generating over ₹1.01 lakh crore in fraudulent ITC. In total, ₹3,107 crore was recovered through blocking ITC, and 316 arrests were made.

The government and GST Network (GSTN) have implemented various measures to combat fake ITC claims, including intelligence sharing, identifying fraudulent registrations, and monitoring suspicious e-way bill activities. Under GST, ITC allows businesses to claim deductions on taxes paid to suppliers, but fraudulent firms exploit this system to defraud the government.

To address the issue, the GST registration process has been tightened, requiring physical verification and Aadhaar authentication for high-risk applicants. Severe penalties, including registration cancellation and property attachment, are enforced for those involved in fake ITC claims.

 

Read More: Key Financial Indices in India on 23rd April 2025

Share :

Trending this week

After Operation Sindoor, Stock Market Rallies

May - 07 - 2025

In the early hours of trading, Sensex had fallen nearly 600 points, and Nifty had slipped below 24,250, but both indices recovered quickly.

Read More

Check the Latest Gold Rates in Your City on 6 May 2025

May - 06 - 2025

On April 22, gold reached a record-breaking price of ₹1 lakh per 10 grams. However, prices have seen a steady decline since then. While there was... Read More