July 30th, New Delhi Since the Goods and Services Tax (GST) was implemented six years ago, the government has discovered 5,070 fraud instances involving GST registrations that used people’s PAN and Aadhaar numbers to falsely claim input tax credits (ITC).
Through these 5,000+ cases, a total of Rs 27,426 crore in GST evasion has been found. However, in the last six years, the recovery has only been worth Rs 922 crore.
These numbers cover the time frame from July 1, 2017 (when the GST system began), through June 30, 2023.
With 765, 713, and 632 instances, respectively, Maharashtra, Delhi, and Tamil Nadu are the top three states in terms of fraud cases involving the abuse of GST registration.
Only Rs 171 crore of the Rs 3,889 crore in GST evasion that was found in Maharashtra was recovered. There was GST evasion worth Rs 4,326 crore in Delhi, but only Rs 159 crore was recovered, while there was GST evasion worth Rs 1,877 crore in Tamil Nadu, but only a pitiful Rs 44 crore was recovered.
It’s interesting to note that the authorities discovered 9,369 fake businesses between May 16, 2023, and July 9, 2023. Additionally, GST fraud of Rs 10,902 crore was found. However, just Rs 45 crore worth of recovery has been made from these fictitious organisations.