Over 25,000 Fake Firms Detected for Rs 61,545 Crore ITC Fraud in FY 2024-25

In a concerning revelation, over 25,000 fictitious firms have been detected for fraudulently claiming Input Tax Credit (ITC) amounting to a staggering ₹61,545 crore during the fiscal year 2024-25. This widespread GST evasion underscores the persistent challenges in ensuring compliance within the tax regime. The detection of such a massive number of fake entities highlights sophisticated methods employed by fraudsters to exploit the ITC mechanism, causing significant revenue loss to the government. Authorities are likely intensifying their efforts to identify and crack down on these fraudulent networks, employing data analytics and stringent verification processes to curb such illicit activities and safeguard tax revenues. The scale of the fraud necessitates robust measures to strengthen the GST system and prevent future occurrences.