In a major reveal, CBIC uncovers Rs. 36,374 Cr. Fake ITC in FY 2023-24: Govt steps up to tackle fraud
The Central Board of Indirect Taxes and Customs (CBIC) has flagged a whopping Rs. 36,374 crore in fake Input Tax Credit (ITC) for the financial year (FY) 2023-24, as per Union Minister of State for Finance Shri Pankaj Chaudhary. This staggering figure exposes the widespread issue of fraudulent ITC claims. The government has been on high alert to combat this rising trend of ITC fraud.
ITC Fraud Detection on the Rise:
The detection of fake ITC has witnessed a significant surge in recent times. For FY 2023-24, CBIC has revealed a total of 9,190 cases involving a monumental Rs. 36,374 crore in false ITC claims. This is a notable increase from the previous fiscal year, which saw 7,231 cases and Rs. 24,140 crore being detected.
Measures to Combat ITC Frauds:
In response to the escalating ITC frauds, the government has rolled out various measures to strengthen regulations and enhance compliance. Some key steps include:
– Biometric-Based Aadhaar Authentication
– Physical Verification in High-Risk Cases
– Bank Account Verification
– Restriction on ITC Availment
– Mandatory GSTR-1 Filing
– Liability of Beneficial Owners
– Provisional Attachment of Property
– E-Way Bill Restrictions
– Reduction in E-Invoice Threshold
– Data Analytics Usage
Impact and Outlook:
The surge in detected fake ITC cases poses a significant challenge to the GST system, necessitating ongoing vigilance and stricter enforcement measures. The government’s proactive stance reflects a firm commitment to curbing fraud and upholding tax integrity. It is crucial for businesses and tax professionals to adhere to these stringent regulations to avoid falling afoul of the new rules.
Stay tuned for further updates on the effectiveness of these measures as they are implemented. Let’s work together to combat ITC fraud and ensure a fair tax system.
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Posted by Ministry of Finance on July 29th, 2024 at 5:42 PM by PIB Delhi