GST Evasion Unveiled: A Three-Year Inquest into ITC Frauds

The Indian Parliament disclosed 55,813 GST evasion cases worth Rs 1,60,950 crore over the past three years and seven months. Measures, including mandatory e-invoicing and special verification drives, are being enforced to combat ITC frauds involving bogus entities. Recent GST reforms aim to ensure consumer benefits post-rate reductions.

In a significant revelation, the Indian Parliament has uncovered 55,813 cases of Goods and Services Tax (GST) evasion amounting to an astounding Rs 1,60,950 crore over the last three years and seven months. Minister of State for Finance, Pankaj Chaudhary, outlined in the Rajya Sabha that these evasion cases, primarily rooted in ITC frauds, involve the employment of bogus entities for fake invoicing.

For the current financial year up to October, 24,109 cases involving Rs 41,664 crore were detected. Various measures, such as the mandatory e-invoice system for businesses with over Rs 5 crore turnover, have been implemented. Additionally, special drives across India have been conducted to target and eradicate fake registrations.

Moreover, the 56th GST Council meeting in September 2025 emphasized strategic reforms aimed at a principled evolution of the tax framework. As a result, the Central Board of Indirect Taxes and Customs (CBIC) is closely monitoring commodity prices to ensure the benefits of GST rate reductions reach end-consumers effectively.

(With inputs from agencies.)