A notification from the Ministry of Finance dated January 6, 2025, providing the authority to the Directorate General of GST Intelligence (DGGI) to manage bogus activities under the Information Technology Act, 2000, and the GST Act, 2017.
The measure hires the Additional and Joint Directors (Intelligence) at DGGI headquarters as nodal officers for implementing provisions u/s 14A(3) of the Integrated Goods and Services Tax Act, 2017.
The ability of the government to manage the bogus activities undergone via unauthorized online platforms, ensuring stronger compliance and monitoring shall gets stringent from this notification.
Purpose and Crucial Role of DGGI
The Directorate General of GST Intelligence is a key enforcement agency that fights tax evasion related to the Goods and Services Tax (GST). Headquartered in New Delhi, DGGI operates with 26 zonal units and 40 regional offices spread across major cities like Bengaluru, Kolkata, and Mumbai. The agency monitors that the business is compliant with the tax norms while protecting the tax system’s virtue.
Think Change Forum approximates the offshore illegal industry in India to be valued at Rs 8,20,000 crore. The Real Money sector solely reported tax evasion of Rs 81,875 crore across just 78 cases in 2023-24, as per the DGGI Annual Report. The unregulated sector contributes to economic malpractice, leading to significant losses in tax revenue for the country.
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It shows the need to improve the monitoring and enforcement when merged with the already alarming matters of tax evasion in goods and services. The recent notification of the government providing authority to the DGGI is anticipated to play a significant role in managing these challenges and ensuring economic virtue.
The newly assigned authority by DGGI will assist in managing distinct emerging issues, including the use of illegal online platforms for evasion, and will reinforce the government’s grip on regulatory compliance.
Areas of Awareness in the Notification
DGGI is provided the task of managing distinct areas along with-
Restricting social media accounts and websites targets online businesses that evade GST payments. Fetching the websites engaged in making bogus GST Certificates. Tracking non-compliant business applications that prevent filing taxes. Avoiding misuse of platforms such as WhatsApp and Telegram for fake transactions.
Why it is Effective
As per the reports online platforms that are not legal have directed to an influential revenue loss via tax evasion. Through providing such new powers the DGGI can target and restrict the bogus platforms. The very measure shall assist in ensuring that businesses function within the statutory framework, facilitating the legal taxpayers.
Impact of MoF Notification
The same notification emphasizes the devotion of the government to curb tax evasion and safeguard national revenue. The same provides the significance of using digital tools and specialized agencies like the DGGI to handle the challenges secured via the digital economy.
The decision will make compliance stronger improve the GST system’s credibility and furnish a stringent procedure to fight the fake practices in India.
