GST Evasion: Central govt in action on traders defrauding, GST evasion worth Rs 1.36 lakh crore caught

The Finance Ministry of India seems to be in action to stop GST evasion in the country. As per the reports, Finance Ministry has detected the theft of Rs 1.36 lakh crore GST in the current financial year as Traders have been found evading the Goods and Service Tax in other ways including generating bills.

The Finance Ministry has stated in its report that tax evasion cases worth more than Rs 1 lakh crore have been identified within the first six months of 2023, which is more than the previous year’s figures. The ministry has also revealed that GST intelligence officers have unearthed a total of staggering GST evasion of Rs 1.36 lakh crore during the current financial year.

The ministry issued a statement highlighting rigorous efforts to deal with this threat. The Directorate General of GST Intelligence (DGGI) is using advanced data analytics tools to detect tax evasion. GST officials have identified evasion cases of more than Rs 1 lakh crore within the first six months of this financial year 2023, surpassing last year’s figures.

The ministry said that overall, the total GST evasion (including fake input tax credit or ITC) in the financial year 2023-24 has been detected at Rs 1.36 lakh crore. A voluntary payment of Rs 14,108 crore has been made to improve the situation. Data shows that a total of 1,040 cases of fraudulent ITC have been reported during the current financial year, involving a staggering amount of Rs 14,000 crore, with 91 fraudsters arrested so far.

A significant portion of tax evasion during the period between April 2020 and September 2023 was detected in the form of fake input tax credit (ICT). GST intelligence officers had identified tax evasion of Rs 57,000 crore in these cases. The ministry said that more than 6,000 fake ITC cases have been detected from April 2020 to September 2023, involving GST evasion of more than Rs 57,000 crore. A total of 500 persons have been arrested in this.

DGGI has intensified efforts to identify and arrest the masterminds behind these tax evasion syndicates operating across the country from June 2023. Modern data analytic tools have proven helpful in solving these cases and arresting tax evaders.