GST evasion detection by DGGI has been steadily increasing since the implementation of GST in 2017. | Photo: Shutterstock
DGGI’s investigation arm has detected 6,084 cases involving Rs 2.01 trillion of GST evasion in the fiscal year 2023-24, with online gaming and BFSI in services and iron, copper, scrap and alloys in goods being the most evasion-prone sectors.
The amount is double the over Rs 1.01 trillion detected in 2022-23 in 4,872 cases.
Of this, voluntary taxes worth Rs 26,605 crore were paid in 2023-24, up from Rs 20,713 crore in 2022-23.
According to the Directorate General of GST Intelligence (DGGI) annual report, around 46 per cent of the evasion cases were related to non-payment of tax (through black supply and under-valuation), 20 per cent were related to bogus Input Tax Credit (ITC) and 19 per cent to incorrect utilisation/non-reversal of ITC.
In 2023-24, the online gaming sector recorded the maximum evasion of Rs 81,875 crore in 78 cases, followed by the banking, finance and insurance (BFSI) sector with evasion of Rs 18,961 crore in 171 cases. The works contract services and pharmaceutical sector had 343 cases and 22 cases of evasion with tax evasion amounting to Rs 2,846 crore and Rs 40 crore respectively.
In 2023-24, 1,976 cases of Goods and Services Tax (GST) evasion were detected in the iron, copper, scrap and alloy sectors involving Rs 16,806 crore of tax evasion.
Pan masala, tobacco, cigarettes and bidi came second with 212 cases involving evasion of Rs 5,794 crore. Plywood, timber and paper had 238 cases involving tax evasion of Rs 1,196 crore. Electronic goods recorded 23 cases (Rs 1,165 crore), followed by marble, granite and tiles, 235 cases (Rs 315 crore).
During the financial year 2023-24, the total GST evasion detected by the officials of DGGI and GST Central Zone was over Rs 2.37 trillion in 20,576 cases. This includes Rs 2.01 trillion detected by DGGI in 6,084 cases and Rs 35,377 crore detected by CGST Zones in 14,492 cases.
GST evasion detection by DGGI has been increasing steadily since the implementation of GST in 2017. In 2017-18, Rs 7,879 crore was detected, followed by Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21 and Rs 50,325 crore in 2021-22.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 14, 2024 | 21:08 IS
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