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CGST uncovers Rs 74,782 crore ITC fraud in FY26, Maharashtra tops the list
Oover 30,000 cases were detected, with Maharashtra and Gujarat topping the list
New Delhi: The tax net is tightening. According to a PTI report, the Centre detected input tax credit (ITC) fraud worth Rs 74,782 crore in FY26, nearly doubling the number of cases from the previous year as enforcement agencies intensified action against GST-related tax evasion across multiple sectors.
According to data shared in the Rajya Sabha by Pankaj Chaudhary, central GST officers uncovered 30,162 cases of fraudulent ITC claims during FY26, compared with 15,283 cases involving Rs 58,773 crore in FY25.
The latest figures also mark a sharp increase from FY24, when authorities detected 9,190 cases involving fraudulent ITC claims worth Rs 36,373 crore.
Maharashtra accounted for the highest value of fraud, with 9,629 cases involving Rs 18,320 crore. Gujarat recorded the largest number of cases at 12,511, with fraudulent claims amounting to Rs 12,633 crore.
Enforcement action also gathered pace during the year, with 358 people arrested in connection with ITC fraud cases, double the 178 arrests made in FY25. Authorities had arrested 182 people in FY24.
The government said the fraudulent claims were spread across a wide range of industries dealing in both goods and services. Sectors under scrutiny included iron and steel, textiles, plastics, paper products, plywood, cement and copper, alongside service industries such as works contracts, manpower supply and real estate.
The minister also disclosed details of fake GST registrations obtained using forged PAN and Aadhaar cards.
During FY26, authorities detected 1,517 fake GST registrations created using forged identity documents. These entities were linked to ITC fraud worth Rs 9,940 crore. As part of the enforcement drive, 60 people were arrested, while seven accused remain absconding.
In comparison, FY25 saw 3,977 fake GST registrations involving fraud worth Rs 13,109 crore, while FY24 recorded 5,699 such registrations linked to fraudulent claims of Rs 15,085 crore.
According to the PTI report, the figures underscore the government’s continued focus on strengthening GST compliance through data-driven investigations and stricter enforcement, even as businesses face increased scrutiny over fraudulent tax credit claims.
