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Data Analytics Helps Identify 932 Fraudulent GST Cases In India

Data Analytics Helps Identify 932 Fraudulent GST Cases In India

Sameer Balaganur

The taxpayers who have purchased goods from tax-evading nonfilers will be identified and heavily punished as necessary as The Department of Revenue has busted 932 cases of fraudulent GST, all thanks to data analysis.

These cases involve fake invoicing and fraudulent tax credits encashed through the facility of IGST refunds.

27,000 taxpayers have filed over ₹ 28,000 crores on account of inverted duty structure in the present year. Till November last year, GST formations have booked 6641 cases involving 7164 entities and have recovered around ₹1057 crores.



A significant case was where the IGST fraud from Surat where the preliminary investigations revealed that 19 firms fraudulently claimed ITC to a whopping 55 crore against fake invoices received by these 19 firms. These firms were valued at ₹679 crores. During the search at the premises of two giant firms M/s Satyam Impex and M/s Aatif Fashion, it was discovered that 17 other firms were registered with GST. These were registered by misusing the identity/documents of daily wagers, casual workers etc.

In another significant fraudulent case was uncovered by Delhi investigators through data analytics where the fraudsters created a network of 500 entities or more. These 500 entities compromised fake billers, intermediary dealers, distributors and fake manufacturers aka bogus manufacturers of Hawai chappals. This network was for availing and encashing fake ITC credits. These bogus manufacturers were based in Uttarakhand and were supplying various fictitious entities and retailers in Gujarat, Tamil Nadu and Maharashtra. The EVA compound, which is a raw material for the Hawai chappals has a chargeable 18% duty whereas chappals have a chargeable GST duty pf 5%. This made it possible for manufacturers to claim refunds of inverted duty structure in the case and made it legal.

The Union Revenue Secretary, Dr Ajay Bhushan Pandey has taken a keen interest in these proceedings and has been reviewing and monitoring these cases weekly.

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Data Analytics wing of GST has identified all these cases thanks to Data Analytics and these cases have been encashed through the facility of IGST.

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