Govt. Detects 55,813 Cases of GST Evasion Worth Rs 1.61 Lakh Crore in Last 3 Years 7 Months

On December 9, 2025, the parliament was informed that 55,813 cases of Goods and Services Tax (GST) evasion worth Rs 1,60,950 crore have been detected during the last 3 years and seven months.

The Minister of State for Finance, Pankaj Chaudhary, said in a written reply in the Rajya Sabha that cases of GST evasion have been detected where fake companies were found to be used as fronts for fake invoicing.

During the current financial year up to October 2025, tax authorities have detected 24,109 cases of tax evasion, resulting in a loss of Rs 41,664 crore to the government. In the previous financial year, 2024-25, there were 15,283 cases of Input Tax Credit (ITC) fraud, where businesses falsely claimed tax credits, leading to a financial loss of Rs 58,772 crore, said PankajChaudhary.

He further added that the government has taken many actions to prevent and tackle cases of fake invoicing. The government also made the electronic invoicing system compulsory for all B2B transactions for businesses with a turnover exceeding Rs 5 crore, and the physical verification requirement in high-risk cases.

He said, “Two special drives, one for the period May 16, 2023, to August 14, 2023, and the other for August 16, 2024, to October 30, 2024, were launched on an all-India basis, both by central as well as state tax administrations, for a concerted and coordinated action against fake registrations and fraudulent passing of ITC.”

An inspection against the fake or non-existent registrations involved physical verification of the business locations of the taxpayers, and during this drive, many non-existent GSTINs were identified and suspended.