RTI Replies Show Tax Evasion of Rs 93000 Crore

Tax evasion has been discovered by the authorities. This covers the central excise and service tax levied prior to 2017. The total amount of tax evasion is Rs 93,375 crore. This was revealed in a response to an RTI request from several regional divisions of the Directorate General of GST Intelligence (DGGI) in major Indian cities (Delhi, Mumbai, Pune, Ahmedabad, Chandigarh etc.). The main office of the DGGI in Delhi had already reported tax evasion of Rs 9,359 crore in the previous six financial years.

Over 7,000 warnings were delivered to tax evaders. The loss of Rs 93,375 crore was found by DGGI, a law enforcement body within the Union Finance Ministry, between FY 2011 and FY 2021. Abhay Kolarlar, an RTI activist, had inquired about this. They are astounded that such a large sum of money was not recovered. He has addressed a letter to Union Finance Minister Nirmala Sitharaman, highlighting the DGGI’s decade-long failure to monitor tax evasion and prosecute defaulters.

What has been demanded

Kolarlar has asked the Finance Ministry to direct the CBIC and CBDT, as well as their respective directorates, to post their yearly performance reports on their websites. To combat piracy, it should also fill approximately 80,000 vacancies. Chartered accountants, cost accountants, data analysts, and law graduates are among them.

Several Suggestions Given

Emphasizing the need for reforms in the tax administration system, the activist has given some suggestions to Sitharaman for monitoring the evasion and recovery of the amount. He said the CBDT, and the Central Board of Indirect Taxes and Customs (CBIC) have failed to punish the thieves by sending them to jail. Kolarkar has sought strengthening of prosecution and monitoring of cases.