₹66 Crore GST Fraud: Is Your ITC Refund at Risk?

A Bombay High Court case exposes a ₹66 crore fake GST input tax credit scam. Here is what GST fraud means for small business owners and why your legitimate ITC claims may face tougher scrutiny.

Here's what happened: Bombay High Court refused interim bail in a ₹66 crore alleged fake GST Input Tax Credit case, citing ongoing investigation and public interest concerns.. The fraud allegedly involved bogus invoices and shell entities used to claim GST credits on goods and services that were never actually supplied.. GST ITC fraud has surged nationally, prompting tax authorities to increase scrutiny of credit claims across businesses of all sizes..

What you should do: Verify every supplier's GSTIN status on the GST portal (gst.gov.in) before filing returns — a cancelled or suspended supplier GSTIN can invalidate your ITC claim.. Check your GSTR-2B statement every month and match it with actual purchase invoices — discrepancies between what your supplier filed and what you claimed are a red flag the department will chase.. If you receive a GST notice questioning your ITC, respond within the deadline with invoice copies, payment proof, and e-way bills — silence is treated as admission of liability..

Even genuine ITC claims can be blocked under Rule 86A if a supplier in your chain turns out to be fraudulent. Keep e-way bills, bank payment proof, and delivery receipts for every purchase — digital paper trails are your only defence if your credit ledger gets frozen.