TaxTMI 
TaxTMI 
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 ?
What is the misuse of ITC in GST ?
08 Sep 2025 
3 Replies 
607 Views Asked by
Input Tax Credit misuse: accumulation via multiple registrations and expense allocation requires tax administration detection and enforcement.
Misuse of Input Tax Credit in GST can arise from accumulating credits across multiple registrations or by booking common expenses under one registration to concentrate ITC. Detecting fraudulent ITC claims and related schemes is primarily the responsibility of the tax administration, not suppliers or customers. Operational responses include administrative detection, enforcement, and targeted training for officials; public forums should not provide practical instructions on catching tax evaders. (AI Summary)
Misuse of Input Tax Credit in GST can arise from accumulating credits across multiple registrations or by booking common expenses under one registration to concentrate ITC. Detecting fraudulent ITC claims and related schemes is primarily the responsibility of the tax administration, not suppliers or customers. Operational responses include administrative detection, enforcement, and targeted training for officials; public forums should not provide practical instructions on catching tax evaders. (AI Summary)