Over 8,000 fake ITC cases booked in FY21

The Goods and Services Tax (GST) authorities have unearthed over Rs 35,000 crore of tax fraud committed by misuse of input tax credit (ITC) provision under the GST regime. During the

2020-21 financial year, the CGST zones and the Directorate General of GST Intelligence (DGGI) had booked about 8,000 cases, involving fake ITC of over Rs 35,000 crore, a statement from the CBIC has said. Under the GST regime, at the time of paying tax on output, entities can deduct the tax they have already paid on inputs. Some have, however, misused the provision by creating fake invoices on inputs.