Latest news with #IntegratedGST
Time of India
4 days ago
- Business
- Time of India
Telangana to tighten GST scrutiny after 3,000cr scam trail
Hyderabad: After uncovering multiple input tax credit (ITC) scams worth over 3,000 crore in recent years, the state commercial taxes department has decided to intensify checks on all GST-registered businesses, with special focus on those with annual transactions above 10 crore. Tired of too many ads? go ad free now The state has around 5.5 lakh registered GST dealers. Of these, nearly two lakh have a turnover above 1.5 crore — 50,000 under central GST and 1.5 lakh under state GST. Officials say these high-turnover dealers will now face tighter scrutiny. The registration process will be made more stringent, with vetting of applications and site inspections when required. Authorities will also step up monitoring of Integrated GST transactions and closely verify ITC claims made by big businesses. Technology and data analytics will be used to flag suspicious cases, and special ITC audits are on the cards. ITC fraud involves creating fake firms and issuing bogus invoices without actual supply of goods or services. This allows fraudsters to claim GST credit they never paid, reducing or avoiding tax liability. For example, a shopkeeper who buys goods worth 100 and pays 18 GST can offset this against 27 GST collected on selling them for 150, paying only 9 to the govt. In fake invoice fraud, no goods are exchanged — but the tax credit is still claimed, cheating the exchequer, a tax expert explained. Officials say the crackdown aims to plug these leakages.
The Hindu
04-08-2025
- Business
- The Hindu
GST evasion of ₹7.08 lakh crore detected in five years, includes input tax credit fraud of ₹1.79 lakh crore
'Central Goods & Services Tax (GST) field officers have detected tax evasion of about $7.08 lakh crore in the last five years till 2024-25 fiscal, including input tax credit (ITC) fraud of about ₹1.79 lakh crore,' Parliament was informed on Monday (August 4, 2025). In 2024-25 fiscal alone, more than ₹2.23 lakh crore of GST evasion were detected by CGST field officers, according to the data shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha. Of the 30,056 cases of GST evasion detected in FY'25, more than half or 15,283 cases pertained to ITC fraud, where the evasion was to the tune of ₹58,772 crore. In the 2023-24 fiscal, ₹2.30 lakh crore worth GST evasion was detected by CGST field officers, involving ITC fraud of ₹36,374 crore. In FY'23, about ₹1.32 lakh crore GST evasion was detected, including ₹24,140 crore of fake ITC claims. In FY'22 and FY'21, GST evasion stood at ₹73,238 crore and ₹49,384 crore respectively. This included ITC fraud of ₹28,022 crore and ₹31,233 crore respectively. Is a revamped GST 2.0 on the cards? | Explained In the last five years (2020-21 to 2024-25), total GST evasion detected by CGST field officers stood at about ₹7.08 lakh crore in 91,370 cases. Taxes recovered during the period by way of voluntary deposit stood at more than ₹1.29 lakh crore. The evasion data includes ITC fraud of about ₹1.79 lakh crore in 44,938 cases between FY'21 to FY'25. Mr. Chaudhary said the Central Government and GSTN are taking various steps to prevent tax evasion, such as digitisation through E-invoicing, GST analytics, highlighting of outliers based on system-flagged mismatches, providing actionable intelligence and selection of returns for scrutiny and selection of taxpayers for audit based on various risk parameters. GST officers detect ₹15,851 crore fraudulent 'input tax credit' claims in April-June; 3,558 fake firms uncovered "These measures are helpful in safeguarding the revenue and nabbing the evaders," Mr. Chaudhary said in a written reply in the Lower House. To a question on the actual net Central GST collection compared to the Revised Estimates (RE), Mr. Chaudhary said net CGST collection was 96.7% of the RE in 2024-25 fiscal. Net CGST includes CGST+Integrated GST+compensation cess. Actual collection stood at more than ₹10.26 lakh crore in FY'25, as against RE of nearly ₹10.62 lakh crore. In FY'24, net CGST collection was more than ₹9.57 lakh crore or 100.1a% of the RE of more than ₹9.56 lakh crore.
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Business Standard
04-08-2025
- Business
- Business Standard
GST evasion of ₹7.08 trn detected in 5 yrs, includes ITC fraud of ₹1.79 trn
Central GST field officers have detected tax evasion of about ₹7.08 trillion in the last five years till 2024-25 fiscal, including input tax credit (ITC) fraud of about ₹1.79 trillion, Parliament was informed on Monday. In 2024-25 fiscal alone, over ₹2.23 trillion of Goods and Services Tax (GST) evasion were detected by CGST field officers, according to the data shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha. Of the 30,056 cases of GST evasion detected in FY'25, more than half or 15,283 cases pertained to ITC fraud, where the evasion was to the tune of ₹58,772 crore. In the 2023-24 fiscal, ₹2.30 trillion worth GST evasion was detected by CGST field officers, involving ITC fraud of ₹36,374 crore. In FY'23, about ₹1.32 trillion GST evasion was detected, including ₹24,140 crore of fake ITC claims. In FY'22 and FY'21, GST evasion stood at ₹73,238 crore and ₹49,384 crore respectively. This included ITC fraud of ₹28,022 crore and ₹31,233 crore respectively. In the last five years (2020-21 to 2024-25), total GST evasion detected by CGST field officers stood at about ₹7.08 trillion in 91,370 cases. Taxes recovered during the period by way of voluntary deposit stood at over ₹1.29 trillion. The evasion data includes ITC fraud of about ₹1.79 trillion in 44,938 cases between FY'21 to FY'25. Chaudhary said the central government and GSTN are taking various steps to prevent tax evasion, such as digitization through E-invoicing, GST analytics, highlighting of outliers based on system-flagged mismatches, providing actionable intelligence and selection of returns for scrutiny and selection of taxpayers for audit based on various risk parameters. "These measures are helpful in safeguarding the revenue and nabbing the evaders," Chaudhary said in a written reply in the Lower House. To a question on the actual net Central GST collection compared to the Revised Estimates (RE), Chaudhary said net CGST collection was 96.7 per cent of the RE in 2024-25 fiscal. Net CGST includes CGST+Integrated GST+compensation cess. Actual collection stood at over ₹10.26 trillion in FY'25, as against RE of nearly ₹10.62 trillion. In FY'24, net CGST collection was over ₹9.57 trillion, or 100.1 per cent of the RE of over ₹9.56 trillion.
The Hindu
17-07-2025
- Business
- The Hindu
Toy trading firm caught in ₹6.25 crore GST fraud using fake address and bogus e-waybills
A firm claiming to trade in toys and video games came under the radar for operating a fake GST input tax credit (ITC) racket worth ₹6.25 crore, according to a statement issued by the Telangana Commercial Taxes Department. The firm, M/s Bala Corporation, was found to have fraudulently obtained its GST registration by submitting fabricated electricity bills for a non-existent address in the Somajiguda-1 circle of Khairatabad, under the Punjagutta division. Investigation revealed that though the firm was registered for trading toys and video games, it generated 1,268 e-waybills between March and April 2025 for entirely unrelated commodities including cement, copper pipes, and plywood. Officials said no actual goods were received or supplied. The proprietor, Nasari Vinod Kumar, is accused of violating key provisions under Sections 16(2) and 122 of the CGST/TGST Act, 2017. The firm allegedly claimed ₹6.25 crore in fake Integrated GST (IGST) input credit and further passed on ₹6.25 crore in fake Central and State GST credits to 32 other taxpayers across various jurisdictions. Following a site inspection conducted by ACTO Nagi Reddy, the GST registration of the firm was cancelled with retrospective effect from 25 February 2025. Letters have also been issued to the jurisdictional officers concerned for initiating recovery proceedings against the 32 recipient entities that benefited from the bogus ITC. A First Information Report (FIR) has been registered at the Hyderabad Central Crime Station (CCS) and an investigation is now in progress.
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Business Standard
06-07-2025
- Business
- Business Standard
Eight years on, GST regime is okay, but GST officers are not efficient
In pre-GST regime, importers of goods were paying additional duties of Customs & taking Cenvat Credit of the same. Now, they are paying Integrated GST and taking input tax credit (ITC) of the same TNC Rajagopalan Listen to This Article Last Monday, the Goods and Services Tax (GST) regime completed eight years. Here is a brief on how importers and exporters have managed during this period. In the pre-GST regime, importers of goods were paying additional duties of Customs and taking Cenvat Credit of the same. Now, they are paying Integrated GST (IGST) and taking input tax credit (ITC) of the same. So, there is not much difference but the nuisance of the special additional duty in lieu of value added tax is gone. Any cess, ITC of which cannot be taken, is always an irritant and there are a
