Last year, the GST intelligence unit exposed tax evasion amounting to over Rs 1.98 lakh crore and apprehended 140 individuals identified as masterminds engaged in defrauding the exchequer, as stated by the Ministry of Finance on Thursday. The Directorate General of GST Intelligence (DGGI) unearthed significant instances of GST evasion across various sectors in 2023, encompassing online gambling, casinos, insurance, and secondment (import of labour services).
According to the ministry’s statement, “DGGI has made notable strides in detecting cases of evasion and facilitating voluntary payments. In 2023, the DGGI identified 6,323 cases involving a duty evasion of Rs 1,98,324 crore, with a voluntary payment amounting to Rs 28,362 crore. Additionally, 140 masterminds implicated in GST evasion were apprehended.”
This marks a substantial improvement over the figures from 2022, where 4,273 cases were uncovered, resulting in a duty evasion of Rs 90,499 crore, voluntary payment of Rs 22,459 crore, and 97 arrests.
The Ministry reported a 119 per cent year-on-year surge in the identified cases of duty evasion by DGGI, accompanied by a 26 per cent rise in voluntary payments.
Addressing the issue of fraudulent Input Tax Credit (ITC) claims, the ministry highlighted DGGI’s initiation of a dedicated campaign targeting ITC fraudsters to curtail government revenue leakage.
Consequently, 2,335 instances of Input Tax Credit (ITC) fraud amounting to Rs 21,078 crore were identified, with a voluntary payment of Rs 2,642 crore.
The report indicates the apprehension of 116 masterminds as part of efforts to counteract fraudulent invoicing, showcasing significant progress compared to 2022. In that year, 1,646 cases were discovered, totalling Rs 14,471 crore, with a voluntary payment of Rs 1,604 crore, and a total of 82 masterminds were arrested.
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The ministry emphasized, “Throughout the year 2023, the Directorate General of GST Intelligence (DGGI), the primary investigative agency for GST matters, persisted in its unwavering pursuit to curb GST evasion nationwide… Non-compliance in these sectors not only poses a threat to fiscal stability but also carries potential social, financial, and economic security implications.”
