DGGI Uncovers ₹1.36 Lakh Crore GST Evasion in FY 2023-24

GST Law Insider
GST Law Insider

LI Network

Published on: October 20, 2023 at 11:16 IST

The Directorate General of GST Intelligence (DGGI) has revealed a staggering amount of ₹1.36 lakh crore in overall Goods and Services Tax (GST) evasion for the fiscal year 2023-24.

This alarming discovery was made as part of an ongoing effort by the DGGI to combat GST evasion, including the fraudulent claiming of Input Tax Credit (ITC), to safeguard government revenue.

A press release from the Ministry of Finance highlighted this significant finding and reported voluntary payments of ₹14,108 crore in response to the evasion detection.

The DGGI, recognized as the premier Intelligence and Investigating Agency for GST tax evasion nationwide, initiated a Special Drive back in November 2020.

The drive aimed to curtail the practice of falsely claiming Input Tax Credits, which had been contributing to revenue losses for the government.

Over the period from April 2020 to September 2023, more than 6,000 cases of fake ITC claims involving over ₹57,000 crore in GST evasion were identified, leading to the arrest of 500 individuals involved in such activities.

This demonstrates the extent and gravity of the problem that the DGGI is actively addressing.

Starting in June 2023, the DGGI intensified its efforts to identify and apprehend the masterminds behind these tax evasion syndicates operating across the country.

Their success in these endeavors can be attributed to data analysis aided by advanced technical tools, which have been pivotal in identifying and arresting tax evaders.

One striking aspect of this tax evasion scheme is the use of unwitting individuals to facilitate these fraudulent activities. Tax syndicates often lure unsuspecting individuals with promises of employment, commissions, or bank loans and persuade them to provide their Know Your Customer (KYC) documents.

These documents are then used to create fake or shell firms without the knowledge or consent of the individuals involved.

In the current fiscal year, 2023-24, a total of 1,040 cases of fake ITC, involving ₹14,000 crore, have been exposed, and 91 fraudsters have been apprehended thus far.

The DGGI’s ongoing efforts to combat GST evasion involve developing intelligence, particularly in emerging areas of tax evasion, using advanced data analytics tools and leveraging its intelligence network across the country to gather critical information.

This revelation underscores the significance of the DGGI’s role in safeguarding government revenue and highlights the continuous battle against GST evasion in India. It serves as a reminder of the importance of vigilant monitoring and strict enforcement in ensuring the integrity of the GST system.

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