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Home / News / India /  Tax credit fraud of Rs31,000 crore detected in FY21

Goods and Services Tax (GST) authorities have detected input tax credit related fraud of over 31,000 crore in FY21 and have booked more than 7,200 cases in this regard, minister of state for finance Pankaj Chaudhary informed Rajya Sabha on Tuesday.

The minister said in a written reply to a question that the government has taken a series of steps to curtail tax evasion including Aadhaar authentication for new GST registrations, suspension or cancelation of GST registration in certain cases, mandatory e-invoices for business-to-business transactions above 50 crore, restriction of tax credit in certain cases and restriction of e-way bill generation by taxpayers who have not filed tax returns for two straight months.

What has aided in the government’s drive against tax evasion is extensive use of technology and data analytics. CBIC has been on a drive against tax evasion since last November. After keeping tax enforcement efforts low in the initial years of GST to help businesses to make a smooth transition into the new indirect tax system, the government is now leveraging the policing features of the technology-enabled tax system to check evasion.

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