Although the GST collections are rising at an average of Rs 1.50 lakh crore on monthly basis in the country, the instances of claiming fake Input Tax Credit (ITC) are also on the rise. According to data, CGST Nagpur Zone, DGGI officers have detected fake ITC evasion of Rs 633.93 crore and made a tax recovery of Rs 246.57 crore during FY 2022-23.

 

The data also mentions the pending amount to be Rs 387.36 crore, indicating that the pending amount is more than recovery amount during the year. In CGST Nagpur Zone the total number of fake ITC cases booked during the year were 486. The data shows that the total number of show cause notices in respect of fake ITC is 41 and total arrests were 3.

 

However, the number of prosecutions and convictions were nil, the data showed. CGST Nagpur Zone, DGGI officers have taken efforts to weed out the instances of fake ITC evasion using information technology (IT) like artificial intelligence (AI) and other modern techniques. Commenting on the data, Sanjay Thul, President of All India Federation of Customs, Central Excise and GST SC/ST Employees Welfare Organisation said, “The issuing of fake GST invoices is as good as printing fake currency. Hence, it is requested to issue the directions to field formations to file the FIR with Police/CBI to punish the tax evaders and to control the tax evasion on this account.” Sources said these cases are heard by the department which does not instill fear among the fraudsters because none of them have been punished so far. This has encouraged fraudsters to commit more crimes.