DGGI detected GST Evasion worth Rs.2.01 Lakh Crore during FY 2023-24

The Directorate General of GST Intelligence (DGGI) discovered a record number of tax evasion cases for the first time in FY 2023-24, with about 6,084 cases involving Rs.2.01 lakh crore of Goods and Services Tax (GST).

According to the annual report of DGGI, the GST’s central investigation and anti-evasion arm, the industries with the most evasion were online gaming and BFSI (Banking, Financial Services, and Insurance) in services, followed by iron, copper, scrap, and alloys in commodities.

The amount of evasion discovered in FY24 is twice that of 2022-23, totalling Rs.1.01 lakh crore across 4,872 cases. In FY 2023-24, evaders voluntarily paid Rs.26,605 crore in outstanding taxes, up from Rs.20,713 crore in FY 2022-23.

According to the report, around 46% of evasion cases involved non-payment of tax (by clandestine supply and undervaluation), 20% involved fake Input Tax Credit (ITC), and 19% concerned the unlawful availment or non-reversal of ITC.

Online gaming had the highest level of evasion in 2023-24, with Rs.81,875 crore evaded over 78 cases. This was followed by BFSI, which reported evasion of Rs.18,961 crore in 171 cases. Works contract services and pharmaceuticals reported 343 and 22 cases of evasion, with tax amounts of Rs.2,846 crore and Rs.40 crore, respectively.

Furthermore, in 2023-24, the iron, copper, scrap, and alloys sectors experienced 1,976 cases of GST evasion, resulting in Rs.16,806 crore in evaded taxes.

Pan masala, tobacco, cigarettes, and bidi were ranked second, accounting for 212 cases involving Rs.5,794 crore in evasion. Plywood, timber and paper accounted for 238 cases, totalling Rs.1,196 crore in evaded taxes. Electronic items had 23 cases worth Rs.1,165 crore, followed by marble, granite, and tiles, which had 235 cases totalling Rs.315 crore.

DGGI officers and Central GST zones found a total of Rs.2.37 lakh crore in GST evasion across 20,576 cases during the financial year 2023-24. The DGGI detected Rs.2.01 lakh crore in 6,084 cases, while the CGST zones discovered Rs.35,377 crore in 14,492 cases.

Sources said, the increasing tendency of evasion is worrying, especially though the DGGI is working hard to reduce revenue loss.

Since the introduction of GST in 2017, the DGGI has constantly boosted its detection of tax evasion, with Rs.7,879 crore identified in 2017-18, 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, according to the report.