GST officers detected 25,009 fake firms passing `61,545 crore ITC in FY25

New Delhi: Central and state GST officers have detected 25,009 fake firms involved in fraudulently passing input tax credit (ITC) worth Rs 61,545 crore during fiscal 2024-25, officials said. During FY25 fiscal, Central and state GST officers recovered Rs 1,924 crore by way of blocking ITC and arrested 168 persons.

As per data on ITC frauds unearthed by Central and State GST officers, over the two years FY24 and FY25, 42,140 fake firms were detected, which were involved in fraudulently generating ITC of over Rs 1.01 lakh crore. Rs 3,107 crore was recovered by way of blocking of ITC, and 316 arrests have been made.

“The Central and State Governments and GSTN have taken various steps to prevent fake ITC claims, including providing intelligence inputs, detecting fraudulent registration, and suspicious e-way bill activity,” an official said.