𝐆𝐒𝐓 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐢𝐞𝐬 𝐭𝐨 𝐏𝐮𝐫𝐬𝐮𝐞 𝐅𝐚𝐤𝐞 𝐈𝐓𝐂 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐧 𝟏.𝟐𝟓 𝐋𝐚𝐤𝐡 𝐄𝐧𝐭𝐢𝐭𝐢𝐞𝐬 𝐔𝐧𝐭𝐢𝐥 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫

The Goods and Services Tax (GST) authorities have announced their intention to undertake investigations into fraudulent Input Tax Credit (ITC) claims made by approximately 125,000 entities. This investigative effort is expected to continue until the end of December.


The Central Board of Indirect Taxes and Customs conducted a specialised investigation spanning a duration of two months, specifically from May 14 to July 14. During this period, a total of 77,200 entities underwent verification. Among these, a total of 20,800 were identified as fraudulent.

These investigations pertain to fraudulent claims of input tax credit (ITC).

The Input Tax Credit (ITC) provision allows GST taxpayers to claim credit for taxes paid on inputs used in the production of goods or services. Fake invoicing means invoices are issued even when there is no real supply of goods or services. These invoices are then used to avail ITC, which causes a revenue loss to the government.