By Admin 
Gst scam: GST officials have revealed a fake input tax credit (ITC) of Rs 15,851 crore in the April-June quarter of the current financial year, which is 29 % higher than the same quarter last year. However, the number of fake firms caught was less than last year.
3558 companies were committing fraud
During the first quarter of FY 26, central and state GST officials have busted a total of 3,558 fake GST firms. Its number is less than 3,840 institutions caught in the same quarter last year. The Chief Minister of all the states led by Goa Chief Minister Pramod Sawant is detecting the theft in tax and there is also talks on ways to stop the input tax credit (ITC) fraud.
The address of 1200 fake companies every month
According to the report of Moneycontrol, an official gave information, on average, about 1,200 fake firms are being traced every month. The number of fake firms caught during April-June is less than last year, which shows that the campaign against fake GST registration has been effective. In the June quarter of FY 26, a scam of Rs 15,851 crore associated with 3,558 fake companies has come to light. Due to this, Rs 659 crore has been recovered with the arrest of 53 people.
What is input tax credit?
Under GST, ITC is a credit for tax paid on any goods or service. Suppose you bought a goods worth 1000 rupees from your supplier with 10 percent GST. That means 100 rupees. Now the supplier should give this 100 rupees to the government.
Later, the businessman sells the goods for 10 percent GST from the supplier and 10 percent at GST i.e. Rs 150. That is, 1000 goods are now being sold in 1500. In this way, the businessman collects GST from retail seller. In such a situation, they should also pay Rs 150 to the government to the government. Now this tax can be claimed as credit or deduction. The government is defrauded by fake companies by passing the wrong ITC.
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