Misuse of the beneficial provision of Input Tax Credit (ITC) under the GST regime is the most common modus of evasion under the GST Law. The field formations of the Central Board of Indirect taxes and Customs (CBIC) have been regularly detecting such cases from the very beginning of the GST regime. During the financial year, 2020-21 the CGST zones and the Directorate General of GST Intelligence (DGGI)have booked about 8000 cases involving fake ITC of over Rs. 35000 crore. During the financial year, 426 persons including 14 professionals such as CAs, Lawyers and masterminds, beneficiaries, directors, etc were arrested. Considering the high proportion of fake ITC availment and utilization a nationwide special drive against the fake GST invoice was launched w.e.f. 9th November 2020 which is still continuing.
Source Taxscan
