GST Evasion of Rs.55575 Cr detected in past two years; 719 Persons arrested

The GST officials have discovered fraud totaling Rs 55,575 crore and have detained over 700 people for defrauding the exchequer over the last 2 years, an official said on Thursday.

The Directorate General of GST Intelligence(DGGI) officers discovered over 22,300 bogus GST Identification Numbers (GSTIN).

The government on Nov 9, 2020 began a nationwide special campaign against unscrupulous organisations that fraudulently obtained and transferred Input Tax Credit (ITC) by issuing phoney or false invoices, dodging Goods and Services Tax (GST).

“GST/ITC fraud worth Rs 55,575 crore has been discovered in the two years of the special drive. Twenty CA/CS professionals are among the 719 people who have been detained,” the source reported.

During the time, voluntary GST (Goods and Services Tax) contributions totaling Rs 3,050 crore were made.

The official stated there will be a “sizeable amount” recovered in these cases but did not specify how much.

The official stated, “We have been able to clamp down on tax evaders thanks to credible intelligence and collaboration across intelligence agencies including DGGI, DRI, Income Tax, Enforcement Directorate, and CBI”.

The GST administration has implemented measures to prevent evasion, such as registration verification, the requirement for e-way bills, validation for filing GST returns, and limitations on the amount of ITC that can be used by enterprises for GST payment.

On July 1st, 2017, a countrywide GST went into effect, replacing 13 cessers and 17 local levies including VAT, service tax, and excise duty.

Only April’s mop-up of around Rs 1.68 lakh crore was more than the almost Rs 1.52 lakh crore in GST revenues collected in October, which was the second-highest collection ever.

For eight consecutive months, the GST mop-up has above Rs 1.40 lakh crore, and for the last two months, it has beyond Rs 1.50 lakh crore.

Officials anticipate that the “new normal” for monthly GST receipts will be Rs 1.50 lakh crore as a result of greater compliance and accelerating economic activity.

GST revenue in April was about Rs 1.68 lakh crore, May (Rs 1.41 lakh crore), June (Rs 1.45 lakh crore), July (Rs 1.49 lakh crore), August (Rs 1.44 lakh crore), September (Rs 1.48 lakh crore) and October (Rs 1.52 lakh crore).