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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Notice to Tata Steel: The world’s well -known company Tata Steel has been sent a GST notice of more than 1000 crores by the tax department, after which this company has come into controversies at this time. In the stock exchange filing on behalf of Tata Steel, it was told on Sunday that he was given this notice on 27 June by the Commissioner (Audit) office of Central Tax in Ranchi.

The cause of the notice issued by Ranchi-based Central Tax Commissioner (Audit) has been told that Tata Steel has incorrectly credit tax of more than Rs 1007 crore from financial year 2018-19 to 2022-23. This is a violation of the State Goods and Service Tax Act 2017 and the Central Goods and Service Tax Act 2017 and Section 20 of Integrateid Goods and Service Tax 2017.

Notice to Tata Steel

Tax officials say that the notice has been sought from Tata Steel within 30 days about this notice and it has been asked why they should not be charged Rs 1007 crore as GST. However, it has been clarified by the company that it will not have any effect on operational work or financial positions and will be responded to on the appropriate platform.

After this notice from the tax department, the first business day of the week i.e. on Monday, Tata’s shares can be seen. However, Tata Steel says that Rs 514.19 crore has already been deposited as GST and it is a part of normal business transactions.

What is the whole controversy

Significantly, whenever a company buys a goods, it pays tax on Ur at that time and after that it also pays tax while selling the goods. In such a situation, he has the right to reduce the tax already paid. This system saves double taxation i.e. double taxation. Tax officials believe that wrong credi has been taken by Tata Steel, which has been violated in a way.