Breaking Down GST Evasion: A Rs 1.95 Lakh Crore Problem

Central GST officers detected tax evasion worth Rs 1.95 lakh crore in 25,397 cases from April to January in the current fiscal year. Over the last five years, a total of 86,711 evasion cases were detected, amounting to Rs 6.79 lakh crore. Efforts to curb evasion include intelligence inputs and projects like 'Project Anveshan'.

Central GST officers have identified tax evasion totaling Rs 1.95 lakh crore in 25,397 cases during the April-January period of this fiscal year, according to a statement in Parliament on Monday. The data, shared in the Lok Sabha, highlighted that over the past five years, 86,711 evasion cases were detected, with a cumulative total surpassing Rs 6.79 lakh crore.

In the current fiscal year, up to January 2025, authorities detected 25,397 evasion cases with a total amount of Rs 1,94,938 crore. During this period, a voluntary deposit of Rs 21,520 crore was made in relation to these tax evasion cases. ITC fraud cases accounted for 13,018 incidents, involving an amount of Rs 46,472 crore.

Minister of State for Finance Pankaj Chaudhary highlighted the government's measures to enhance compliance and detect evasion. Steps like providing intelligence inputs, fraudulent registration detection, and scrutinizing suspicious activities of taxpayers are part of the strategy. Projects such as 'Project Anveshan' aim to identify potential fraudulent GSTINs using advanced techniques like Facial Recognition Systems and e-way bill data.

(With inputs from agencies.)