DGGI detects more than 6,000 fake ITC cases involving GST Evasion of Rs. 57,000 Crore

The Directorate General of GST Intelligence (DGGI) detected more than 6,000 fake ITC cases involving more than Rs. 57,000 crore GST evasion and arrested 500 persons from April 2020 to September 2023.

Being a premier Intelligence and Investigating Agency of GST tax evasion across the country, the Directorate General of GST Intelligence (DGGI) conducted a Special Drive against the practice of claiming fake Input Tax Credit (ITC) to plug the leakage in Government revenue in November 2020 and continues to check ITC evasion actively. Between April 2020 to September 2023, more than 6,000 fake ITC cases involving exceeding Rs. 57,000 crore GST evasion have been detected and 500 persons have been arrested.

Since June 2023, DGGI has laid special stress 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 led to the arrest of tax evaders.

These tax syndicates often use gullible persons and entice them with a job, commission, bank loan, etc. to extract their Know Your Customer (KYC) documents which were then used for the creation of fake/ shell firms/ companies without their knowledge and consent. In some cases, KYCs were used after asking the concerned person by paying them small pecuniary benefits.

In the current FY 2023-24, a total of 1,040 fake ITC cases involving Rs. 14,000 crore have been detected with a total of 91 fraudsters have been apprehended to date.

To handle the menace of GST evasion, the DGGI develops intelligence, especially in new areas of tax evasion, through advanced tools for data analytics besides using its intelligence network across the country to collect such information. Overall in the Financial Year 2023-24, the Directorate General of GST Intelligence detected Rs. 1.36 lakh crore overall GST evasion involving voluntary payment of Rs. 14,108 crore.