Massive GST Evasion Uncovered: A Deep Dive Into Fraudulent Practices

Over Rs 1.88 lakh crore in GST evasion was detected by Central GST officers between April-December 2024. Minister Pankaj Chaudhary revealed that arrests and recoveries were significant, with previous fiscal years showing consistent GST evasion issues. Special drives unearthed non-existing GSTINs, highlighting the scale of tax fraud.

The Central GST officers uncovered tax evasion amounting to over Rs 1.88 lakh crore between April and December 2024, as informed to the Lok Sabha. The Minister of State for Finance, Pankaj Chaudhary, reported that this figure includes ITC fraud from 72,393 cases, leading to 132 arrests and recovery of Rs 20,128 crore.

In the fiscal year 2023-24, the CGST officials detected a staggering Rs 2.30 lakh crore in GST evasion across 20,582 cases, recovering Rs 31,758 crore and arresting 223 individuals. Previous years also showed substantial evasion figures—Rs 1.32 lakh crore in 2022-23 and Rs 73,238 crore in 2021-22.

Efforts to combat fake GST registrations resulted in two special operations conducted by GST officers. These drives found 90,201 non-existing GSTINs, leading to the detection of Rs 49,703 crore in tax evasion and multiple arrests, underscoring pervasive issues in the GST system.

(With inputs from agencies.)