The Govt. has booked nearly 1,800 cases for issuing fake GST invoices since 2017-18. The highest number of cases – 1,220 cases involving an amount of nearly Rs 9,500 crore have been reported in the last financial year. The government informed the Rajya Sabha that 1,796 cases have been booked in three years for claiming the Input Tax Credit (ITC) available under the GST.
GST was implemented across the country in July 2017. It subsumed a host of taxes on production and supply of goods and services levied by both the Union and state governments. The new tax eliminated the cascading of taxes by providing an input tax credit for taxes already paid in the previous stages of manufacturing.
However, some businesses started misusing this provision by issuing fake GST invoices to claim the tax concession.
In the last 9 months of FY 2017-18, the Central Board of Excise and Customs (CBIC) booked only 8 cases for issuing fake GST invoices, involving an amount of Rs 14.15 crore.
The small number of cases was attributed to negligent enforcement as tax authorities were interested in stabilizing the tax system that is regarded as the biggest overhaul of the indirect tax system of the country since independence. However, in the next year, the government booked 1,220 cases for issuing fake GST invoices, involving an amount of Rs 9,470 crore.
In the first three months of this financial year, the government booked 568 cases for issuing fake GST invoices to claim the input tax credit. These involve an amount of Rs 2,034 core.
In the last three years, the government has booked total 1,796 cases for issuing fake GST invoices to claim tax concessions. The total amount involved turns out to be Rs 11,518.55 crores.