Lok Sabha Question No. 680 (UNSTARRED), answered on 2023-07-24
Subject: Cases registered under GST Invoice Frauds
Ministry: FINANCE
Asked by: Adala Prabhakara Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO. 680

To be answered on Monday, July 24, 2023/Sravana 2, 1945 (Saka)

## 'CASES REGISTERED UNDER GST INVOICE FRAUDS'

## 680. SHRI ADALA PRABHAKARA REDDY:

## Will the Minister of FINANCE be pleased to state:

- (a) the total number of cases registered under GST invoice frauds during the last five years, State/UT-wise;
- (b) the total number of persons arrested under the same;
- (c)  the total amount of frauds detected and recovered under the same; and
- (d) the measures undertaken/being undertaken by the Government to curb such GST invoice related frauds?

## ANSWER MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a),  (b)  and  (c):  The  total  number  of  cases  registered  by  Central  GST  under  GST invoice frauds during the period 2018-19 to 2022-23, State/UT wise, alongwith the amount detected, recovered and arrests made is as under:

| State/UT                          |   No. of cases |   Detection (Rs. in Crore) |   Realization (Rs. in Crore) |   No. of persons arrested |
|-----------------------------------|----------------|----------------------------|------------------------------|---------------------------|
| Andaman &Nicobar Islands          |              0 |                          0 |                            0 |                         0 |
| Andhra Pradesh                    |            490 |                        667 |                          386 |                         9 |
| Arunachal Pradesh                 |             10 |                          7 |                            1 |                         0 |
| Assam                             |            250 |                        519 |                          129 |                         4 |
| Bihar                             |            185 |                        698 |                           25 |                         0 |
| Chandigarh                        |             58 |                         60 |                           18 |                         2 |
| Chhattisgarh                      |            591 |                       1892 |                          354 |                        27 |
| Daman &Diu and Dadra Nagar Haveli |             53 |                        118 |                           18 |                         3 |
| Delhi                             |            754 |                      14901 |                          780 |                       139 |
| Goa                               |             39 |                         13 |                            4 |                         0 |
| Gujarat                           |           4486 |                      11949 |                         1027 |                       153 |
| Haryana                           |           3454 |                      12488 |                          833 |                        94 |

| Himachal Pradesh   |    98 |    340 |    21 |    0 |
|--------------------|-------|--------|-------|------|
| Jammu &Kashmir     |    42 |     84 |    41 |    0 |
| Jharkhand          |   315 |   1196 |    51 |    4 |
| Karnataka          |  1076 |   4847 |   536 |   25 |
| Kerala             |   202 |    529 |    34 |    9 |
| Ladakh             |     0 |      0 |     0 |    0 |
| Lakshadweep        |     0 |      0 |     0 |    0 |
| Madhya Pradesh     |   458 |    978 |   202 |   16 |
| Maharashtra        |  5021 |  30013 |  2215 |  272 |
| Manipur            |    19 |     15 |     7 |    0 |
| Meghalaya          |    30 |     53 |    11 |    0 |
| Mizoram            |     3 |      1 |     1 |    0 |
| Nagaland           |    10 |     16 |     0 |    0 |
| Odisha             |   670 |   2357 |   108 |   17 |
| Puducherry         |    22 |     28 |     2 |    0 |
| Punjab             |   221 |   1621 |   140 |   57 |
| Rajasthan          |  1151 |   5249 |   487 |   81 |
| Sikkim             |    30 |     10 |     6 |    0 |
| Tamil Nadu         |  2556 |   3894 |   362 |   90 |
| Telangana          |  1113 |   3275 |   728 |   61 |
| Tripura            |    71 |     98 |     5 |    0 |
| Uttar Pradesh      |   758 |   9471 |  1131 |   91 |
| Uttarakhand        |   189 |   2202 |   215 |   44 |
| West Bengal        |  1829 |   5867 |   465 |   41 |
| Grand Total        | 26254 | 115457 | 10346 | 1239 |

(d) Details of the measures taken by the Government to prevent GST invoice related frauds are as under:

1. Using  robust  data  analytics  and  artificial  intelligence  to  identify  and  track risky taxpayers and detect tax evasion;
2. Carrying out special all India drive to weed out fake/bogus registrations from 16.05.2023 to 15.07.2023;
3. Insertion of sub-rule (4A) in rule 8 of CGST Rules, 2017 to provide for risk based biometric-based Aadhaar authentication of registration applicants;
4. Amendment  in  rule  9 of CGST  Rules,  2017  to  provide for physical verification in high risk cases, even when Aadhaar has been authenticated;
5. Amendment in rule 10 A of CGST Rules, 2017 to provide for requirement of bank account to be furnished as a part of registration process to be in the name of the registered persons and obtained on PAN of the registered person and also linked with Aadhaar in case of proprietorship firm. Also, the GST Council in its 50 th meeting has recommended  further  amendment  in  rule  10A  to  provide  that  the  details  of  bank account  will  be  required  to  be  furnished  within  30  days  of  grant  of  registration  or before filing of GSTR-1, whichever is earlier;

6. Restriction on availment of ITC to invoices and debit notes furnished by the supplier in their statement of outward supplies;

7. Sharing  of  data  with  partner  law  enforcement  agencies  for  more  targeted interventions;
8. Reduction in threshold limit for issue of e-invoice for B2B transactions from Rs. 10 crore to Rs. 5 crore, w.e.f. 01.08.2023;

9. Restriction on generation of e-way bills by non- compliant taxpayers;

10. Making the beneficial owner liable for penal action and prosecution similar to that of actual supplier/recipient, in cases where a supply has been made without the issuance of an invoice, or invoice has been issued without supply, or excess ITC has been availed/distributed; and

11. Amendment  in  Section  83  of  the  CGST  Act  to  provide  that  provisional attachment of property can be done in respect of any other person who has retained benefits of such transactions.

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