GST dept uncovers ₹15k-cr fake claims, 3,500 shell cos

GST officers have so far carried out 2 pan-India drives against fake registrations

- Press Trust of India

GST officers have uncovered fake input tax credit (ITC) claims of ₹15,851 crore in the April-June quarter of current fiscal, a 29% jump over the year-ago period, even though the number of fake firms detection was less yo-y, officials said.

The total number of fake firms detected by central and state GST officers during the first quarter of FY26 stood at 3,558, less than 3,840 such entities detected in the same quarter of FY25.

Panel of state finance ministers, chaired by Goa chief minister Pramod Sawant, is currently studying tax evasion in specific sectors and looking at ways to check input tax credit (ITC) fraud.

“On an average, about 1,200 fake firms are getting detected every month. The number of fake firm detection in the April-June period is less compared to last year, which shows that the drive against fake GST registration has worked,” an official said.