Tax Evasion of Rs.1.2 Trillion detected by GST Intelligence so far Since 2020

The Directorate General of GST Intelligence (DGGI) has detected Rs.1.2 trillion in tax evasion using fake input tax credit (ITC) since 2020, with a focus on identifying and apprehending masterminds and disrupting syndicates operating across the country, according to a finance ministry release on Tuesday.

GST intelligence department has discovered around 59,000 likely fake firms for verification and further investigation, and 170 individuals linked in fraud have been detained. This was disclosed during the GST enforcement chiefs’ national conference, after which the ministry published a release.

This comes against the backdrop of a specific campaign by both the Centre and the State to identify and eliminate bogus registrations. The two-month special all-India drive began on August 16 to detect suspicious/fake GSTINs, conduct necessary verification, and take corrective action to remove these fake billers from the GST ecosystem in order to protect government revenue.

While addressing the conference, Revenue Secretary Sanjay Malhotra emphasized the significance of striking a balance between enforcement activities and ease of doing business. He urged Central and State GST formations to focus on fraudulent registrations during this particular drive, emphasizing the importance of tracking down the masterminds and beneficiaries of fake ITC so that harsh action can be taken to deter future fraud.

Malhotra stated that recent improvements to GST returns, such as GSTR-1A, would further enhance efforts to combat GST evasion in a methodical manner.

During the event, the chairman of the Central Board of Indirect Taxes and Customs (CBIC), Sanjay Agarwal instructed the enforcement units to focus on actual evasion rather than interpretative difficulties and general business practice.