New Delhi: The Government of India has detected 30,162 cases of fake GST Input Tax Credit (ITC) fraud involving ₹74,782 crore during the financial year 2025–26. The figures were shared in Parliament, highlighting the scale of GST-related tax evasion across the country. Authorities also confirmed that 358 individuals were arrested as part of enforcement actions against fraudulent GST networks.
Investigations found that many of the frauds involved fake GST registrations, shell companies, forged invoices, and bogus transactions used to claim ineligible Input Tax Credit. Maharashtra and Gujarat recorded the highest number of detected cases, making them the most affected states in terms of GST fraud investigations. Tax authorities continue to strengthen data analytics, risk assessment, and compliance monitoring to identify suspicious claims and prevent revenue losses.

Key Highlights

• ₹74,782 crore worth of fake GST ITC fraud detected in FY26.
• 30,162 fraudulent GST cases identified by Central GST authorities.
• 358 arrests made during enforcement operations.
• Maharashtra and Gujarat reported the highest number of cases.
• Fraud involved fake invoices, shell companies, and bogus GST registrations.

Conclusion

The latest GST enforcement data highlights the government’s continued efforts to combat financial fraud through technology-driven investigations and stricter compliance measures. Businesses are advised to verify supplier credentials, maintain accurate tax records, and ensure all GST Input Tax Credit claims are supported by genuine commercial transactions to reduce the risk of fraud and ensure regulatory compliance.