According to a statement from the finance ministry, the Directorate General of GST Intelligence (DGGI) has discovered a case of GST evasion amounting to ₹57,000 crore between April 2020 and September 2023. This evasion involved more than 6,000 instances of fraudulent input tax credit (ITC) claims, leading to the arrest of 500 individuals.
Starting from June 2023, the DGGI has prioritized the identification and catching of the masterminds behind syndicates operating nationwide, aiming to cease their operations.
The statement mentioned that a special campaign was launched by the DGGI in 2020 to tackle the practice of fraudulent ITC claims, aiming to plug the revenue leakage for the government.
The detection of these cases involved the use of data analysis and advanced technical tools, which ultimately led to the apprehension of tax evaders.
The statement further explained that these tax syndicates often targeted unsuspecting individuals, enticing them with job opportunities, commissions, bank loans, etc., to misuse their KYC documents. These documents were then used without the individuals’ knowledge or consent to create fake or shell firms.
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In some instances, individuals were aware of their KYC documents being misused and were provided with small monetary benefits by the fraudsters.
The statement also highlighted that in the current financial year (2023-24), there are around 1,040 cases of fake ITC have been detected, amounting to ₹14,000 crore, resulting in the apprehension of 91 fraudsters.
To combat GST evasion, the DGGI employs advanced tools for data analytics, constantly develops intelligence in new areas of tax evasion, and utilizes its network across the country to gather relevant information, as stated in the statement.
Overall, during the FY2023-24, a total of ₹1.36 lakh crore has been identified as GST evasion, including fake ITC, and voluntary payments of ₹14,108 crore have been made to rectify the same.