Indian Directorate Detects ₹57,000 Crore GST Evasion in Massive Crackdown

Indian Directorate Detects ₹57,000 Crore GST Evasion in Massive Crackdown

VoM News Desk | October 18, 2023 | 10:17 PM IST | Breaking News | Follow on Google News

Indian Directorate Detects ₹57,000 Crore GST Evasion in Massive Crackdown

Indian Directorate Detects ₹57,000 Crore GST Evasion in Massive Crackdown

Massive GST Evasion Uncovered

The Directorate General of GST Intelligence (DGGI) in India has uncovered a staggering ₹57,000 crore worth of Goods and Services Tax (GST) evasion from April 2020 to September 2023. Over 6,000 cases of fake input tax credit (ITC) claims were identified, leading to the arrest of 500 individuals involved in these fraudulent schemes. In its effort to combat this menace, the DGGI launched a special drive from June 2023 onwards, with the aim of apprehending the masterminds behind these tax evasion syndicates.

Sophisticated Techniques and Financial Losses

The DGGI used data analysis coupled with advanced technical tools to reveal and thwart these GST evasion cases. Tax syndicates often exploited unwitting individuals, luring them with the promise of jobs, commissions, bank loans, or other incentives to extract their KYC (know your customer) documents. These documents were subsequently used to create fake or shell firms without the individuals’ knowledge or consent. In some instances, KYC documents were used with the individuals’ knowledge in exchange for small financial benefits.

Current Financial Year’s Efforts

During the current financial year (2023-24), 1,040 fake ITC cases involving ₹14,000 crore have been detected, resulting in the apprehension of 91 fraudsters. DGGI utilizes advanced data analytics tools and its extensive intelligence network to identify new areas of tax evasion and gather critical information to combat fraudulent schemes. In total, during FY2023-24, ₹1.36 lakh crore has been detected in overall GST evasion, which includes fake ITC cases. Additionally, ₹14,108 crore has been voluntarily paid in response to these detections.

VoM News Desk

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