What is the misuse of ITC in GST ?

[Dinesh kumar]

By getting multiple GSTIN, how can one accumulate ITC in one GSTIN. 

is there any case regarding fraudulent claims of ITC ? 

how can we catch them ? While buying or selling to them ? 
 

 

AI Summary

Combat GST input tax credit misuse: ensure proper registration, documentation and regulatory enforcement, due diligence by market participants Misuse of input tax credit (ITC) can occur when a person obtains multiple GST registrations to concentrate credit in one GSTIN or books common expenses under a single registration to inflate ITC. Fraudulent ITC claims have been the subject of enforcement actions; detection and prosecution are primarily regulatory responsibilities of tax authorities rather than suppliers or purchasers. Market participants should exercise due diligence in transactions and maintain documentation, but investigations, identification of evasion schemes, and training for enforcement are functions of the tax department and specialized agencies. Public forums should not be used to solicit operational tactics for evasion.