DGGI detected GST evasion of ₹1.36 trillion this year: finance ministry | Mint
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Business News/ News / India/  DGGI detected GST evasion of 1.36 trillion this year: finance ministry
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DGGI detected GST evasion of ₹1.36 trillion this year: finance ministry

From April 2020 to September 2023, more than 6,000 fake input tax credit cases involving more than ₹5.7 trillion in evaded GST has been detected and a total of 500 persons have been arrested, the ministry said

Since June 2023, DGGI has placed special emphasis on identifying and apprehending the masterminds of syndicates operating across the country, the ministry saidPremium
Since June 2023, DGGI has placed special emphasis on identifying and apprehending the masterminds of syndicates operating across the country, the ministry said

New Delhi: The Directorate General of GST Intelligence (DGGI) has detected 1.36 trillion of goods and services tax evasion this fiscal, including cases involving fake claims of input tax credit, the finance ministry said in a statement on Wednesday. Of this, a voluntary payment of 14,108 crore has been collected, the ministry added.

In the past three and a half years the probe agency has found instances of substantial tax evasion as part of a special drive.

Since June 2023, DGGI has placed special emphasis on identifying and apprehending the masterminds of syndicates operating across the country, the ministry said. Cases have been unravelled using data analysis aided by advanced technical tools, which has led to the arrest of tax evaders, it said.

These tax syndicates entice potential victims them with the promise of a job, commission, bank loan, etc to extract their ‘know your customer’ (KYC) documents. These are then used to create shell entities without their knowledge and consent, the ministry said. In some cases, such KYC details were used with the knowledge of the person concerned by paying them small amounts. In the current financial year, a total of 1,040 fake input tax credit related cases involving 14,000 crore have been detected and 91 fraudsters have been apprehended, the ministry said.

The tax system is based on reporting of value addition and economic activity at every stage of the value chain, so it is difficult for entities engaged in tax evasion to stay off the radar of probe agencies. Also, businesses' reporting obligations have been increased steadily to ensure better monitoring of economic activity.

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ABOUT THE AUTHOR
Gireesh Chandra Prasad
Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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Published: 19 Oct 2023, 10:35 AM IST
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