Central GST officials detected 30,162 cases of input tax credit (ITC) fraud worth Rs 74,782 crore in 2025-26, of which Maharashtra and Gujarat had the highest number of cases. Responding to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that 9,629 cases of fraud worth Rs 18,320 crore were registered in Maharashtra, while 12,511 cases of fraud worth Rs 12,633 crore were registered in Gujarat. A total of 358 people were arrested during the financial year.
Fraud cases are continuously increasing
Chaudhary said in a written reply that these cases of ITC fraud have been found in various sectors related to both goods and services including iron and steel, textiles, plastics, paper products, plywood, cement, copper and various service sectors like work contract service, manpower supply services, real estate services etc. The number and value of fraud cases detected have increased rapidly in the last three years. In 2024-25, GST officials detected 15,283 cases involving Rs 58,773 crore, leading to 178 arrests. In 2023-24, authorities unearthed 9,190 cases worth Rs 36,373 crore, arresting 182 people.
Fake registration cases
The minister also shared details of fake GST registrations obtained using fake PAN and Aadhaar cards. According to the reply, officials detected 1,517 fake GST registrations in FY 2026 that were made using forged identity documents. These units were involved in ITC fraud of Rs 9,940 crore. 60 people were arrested during the year, while seven accused are absconding.
In comparison, 3,977 fake GST registrations involving ITC fraud of Rs 13,109 crore were detected in FY25, while 5,699 such registrations involving Rs 15,085 crore were identified in FY24. The government did not specify the sectors in which the fake registrations were concentrated, but said cases of widespread ITC fraud were spread across manufacturing as well as service industries.
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