DGGI’s 3-Year Crackdown: 6,000+ Fake ITC Cases Uncovered, 500 Arrests, ₹57,000 Crore Saved

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As the leading investigative agency responsible for combatting GST tax evasion throughout the nation, the Directorate General of GST Intelligence (DGGI) has embarked on a specialised initiative to combat the fraudulent practice of claiming illegitimate Input Tax Credit (ITC) since November 2020.

This initiative is aimed at plugging the revenue leaks in the government’s coffers and remains an ongoing and active effort. From April 2020 to September 2023, the DGGI has successfully unearthed over 6,000 cases involving fake ITC claims, resulting in a staggering GST evasion exceeding Rs. 57,000 crore. Additionally, during this period, a total of 500 individuals have been apprehended for their involvement in these fraudulent activities.

Also read: DGGI Exposes Rs 20 Crore GST Evasion in Chewing Tobacco Business; Arrests one

Starting from June 2023, the DGGI has intensified its efforts to identify and apprehend the masterminds behind these schemes, as well as the syndicates operating nationwide. To achieve this, they’ve employed a data-driven approach supported by advanced technological tools. This strategy has proven to be highly effective in identifying and arresting tax evaders who are part of these syndicates.

These nefarious groups often manipulate unsuspecting individuals by luring them with promises of employment, commissions, bank loans, and other incentives to obtain their Know Your Customer (KYC) documents. These KYC documents are then used to create fake or shell companies without the individuals’ knowledge or consent. In some instances, the concerned parties are aware of their KYC documents being used, often in exchange for small financial rewards.

Also read: 8000 Fake GST ITC Claim Cases: DGGI to send Notices to Entities

In the current financial year, 2023-24, the DGGI has detected a significant number of cases involving fake ITC claims, totaling Rs. 14,000 crore, resulting in the apprehension of 91 individuals to date.

To effectively combat the menace of GST evasion, the DGGI has leveraged various tools and techniques to develop intelligence, particularly in emerging areas of tax evasion. These include cutting-edge data analytics and their extensive intelligence network spread across the country, enabling them to gather pertinent information. In the fiscal year 2023-24 alone, they have identified a total GST evasion amounting to Rs. 1.36 lakh crore, inclusive of fake ITC claims. Remarkably, taxpayers voluntarily contributed Rs. 14,108 crore towards this sum, reflecting a collaborative effort to rectify tax discrepancies.

Read More: Central Govt to Set Up DGGI Offices Cell to Monitor Websites and Portals Running without Paying Tax: GST Council

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