GST authorities detect GST Evasion of of Rs.14,302 cr across 2,784 cases in April-May

The Goods and Services Tax (GST) officials found evasion worth Rs 14,302 crore in 2784 cases between April-May this year, accounting for approximately 11% of overall GST evasion detected in the previous financial year.

Evasion of Rs 1.32 lakh crore was found in 15,562 cases in the financial year 2022-23, a 44 percent rise over the previous financial year, according to statistics released by Finance Minister Nirmala Sitharaman in answer to a question in Lok Sabha on Monday.

In terms of direct taxes, Sitharaman claimed that in the financial year 2022-23, 741 organisations were searched and 1253 surveys were undertaken, with total assets seized totaling Rs 1765.56 crore. In the financial year 2021-22, the tax agency conducted 686 searches and 1046 inspections, seizing assets worth Rs 1159.59 crore.

“Because information is now available in electronic form, the Income Tax Department has developed a wide range of non-intrusive methods for detecting tax evasion. Some of the important measures are: Computer Assisted Scrutiny Selection (CASS) for selecting cases for Scrutiny; Non-filers Monitoring System (NMS) to prioritise action on non-filers; Income Tax Business Application (ITBA) to help curb tax evasion by putting in place end-to-end processes for all Department verticals, and so on. (b) Extensive use of information technology and data analytics tools also aids in the detection of high-risk cases, prompt e-verification of questionable cases, and enforcement measures in suitable circumstances,” Finance Minister, Sitharaman stated.

In addition, the GST department is taking a number of anti-evasion measures, including using robust data analytics and artificial intelligence to identify and track risky taxpayers; sharing data with partner law enforcement agencies for more targeted interventions; and lowering the threshold limit for issuing an e-invoice for B2B transactions from Rs 10 crore to Rs 5 crore beginning August 1, 2023.

Since 2018-19, the income tax agency has undertaken 3946 searches, 30,846 inspections, and seized assets totaling Rs 6,662.52 crore. During the same time period, the tax agency filed 5,493 prosecution complaints.

Between 2020-21 and 2023-24 (April-May), a total of Rs 2.68 lakh crore in GST evasion was found in 43,516 cases. During that time, a total of Rs 76,333 crore was recovered, with 1,020 people arrested, according to the reply. In the current financial year (April-May), 2,784 cases of evasion totaling Rs 14,302 crore were discovered. During the period, 28 people were arrested and Rs 5,716 crore was seized.