Lok Sabha Question No. 1385 (UNSTARRED), answered on 2019-07-01
Subject: GST Frauds
Ministry: FINANCE
Asked by: Adhir Ranjan Chowdhury

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

……..

## LOK SABHA UNSTARRED QUESTION NO.1385 TO BE ANSWERED ON 1 st  JULY, 2019/ ASADHA 10, 1941 (SAKA)

## 1385. SHRI ADHIR RANJAN CHOWDHURY:

Will the Minister of Finance be pleased to state -

- (a) whether there is a  spate of Goods and Services Tax (GST) frauds in the country and several people have been arrested for allegedly issuing fake invoices to claim input tax credit under GST and if so, the details thereof;
- (b) whether according to RBI, an amount of about Rs. 71,500 Crore has been marked in over 6800 bank fraud cases, in the fiscal year 2018-19 and if so, the details thereof; and
- (c) the details of steps taken by the Government to strengthen monitoring tools to prevent GST evasion?

## ANSWER

## MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

- (a) Yes, Sir. Cases  of  fake  invoice(s)  involving  fraudulent  Input  Tax  Credit  in  GST,  have  been  booked  by  Central  GST authorities, the details are as under:-
- (b) Yes, Sir. As per RBI, an amount of Rs.71,542.94 Crore was involved in total 6,801 cases, in frauds (Rs. one lakh and above) in the fiscal year 2018-19, the details are as under:-
- (c) Various  measures  have  been  taken  to  prevent  GST  evasion,  A  specialized  Directorate  within  the  Central  Board  of Indirect Taxes and Customs (CBIC) which is engaged in Data Analytics & Risk Management disseminates analytical reports and intelligence inputs to field formations of CBIC for the purpose of scrutiny, audit and enforcement, to prevent GST evasion. The GST Council has also approved the use of e-invoicing in B2B transactions.

|   S.No. | Period/Financial Year              |   No. of Cases |   Amount (Rs. In Crore) |   No of persons arrested |
|---------|------------------------------------|----------------|-------------------------|--------------------------|
|       1 | 2017-18 (01.07.2017 to 31.03.2018) |              5 |                   12.67 |                        2 |
|       2 | 2018-19                            |           1620 |                11251.2  |                      154 |
|       3 | 2019-20 (till 25.06.2019)          |            535 |                 2565.4  |                       40 |

| Year-wise breakup of frauds reported in 2018-19 based on their year of occurrence. (Category-Fraud with amount involved in Rs. 1 Lakh and above)   | Year-wise breakup of frauds reported in 2018-19 based on their year of occurrence. (Category-Fraud with amount involved in Rs. 1 Lakh and above)   | Year-wise breakup of frauds reported in 2018-19 based on their year of occurrence. (Category-Fraud with amount involved in Rs. 1 Lakh and above)   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Year                                                                                                                                               | No. of Frauds                                                                                                                                      | Amount involved (Rs. In Crore)                                                                                                                     |
| Before 2009-10                                                                                                                                     | 179                                                                                                                                                | 4472.69                                                                                                                                            |
| 2009-10                                                                                                                                            | 67                                                                                                                                                 | 3224.15                                                                                                                                            |
| 2010-11                                                                                                                                            | 93                                                                                                                                                 | 3458.32                                                                                                                                            |
| 2011-12                                                                                                                                            | 112                                                                                                                                                | 5165.67                                                                                                                                            |
| 2012-13                                                                                                                                            | 197                                                                                                                                                | 6708.28                                                                                                                                            |
| 2013-14                                                                                                                                            | 291                                                                                                                                                | 7477.37                                                                                                                                            |
| 2014-15                                                                                                                                            | 413                                                                                                                                                | 9484.60                                                                                                                                            |
| 2015-16                                                                                                                                            | 535                                                                                                                                                | 9890.84                                                                                                                                            |
| 2016-17                                                                                                                                            | 699                                                                                                                                                | 7679.32                                                                                                                                            |
| 2017-18                                                                                                                                            | 1379                                                                                                                                               | 7247.08                                                                                                                                            |
| 2018-19                                                                                                                                            | 2836                                                                                                                                               | 6734.60                                                                                                                                            |
| Grand Total                                                                                                                                        | 6801                                                                                                                                               | 71542.94                                                                                                                                           |