GST intelligence detects tax evasion of Rs 1.36 trillion so far in FY24

New Delhi, Oct 18, 2023 

Between Apr 2020- Sep 2023, over 6,000 fake ITC cases reported 

The Directorate General of Goods and Services Tax Intelligence (DGGI) has detected tax evasion amounting to Rs 1.36 trillion in the current financial year, recovering Rs 14,108 crore, the finance ministry disclosed on Wednesday. This figure includes 1,040 cases of bogus input tax credit, valued at Rs 14,000 crore. So far, 91 individuals involved in fraud have been apprehended.

The finance ministry stated that DGGI is utilising data analytics and human intelligence to bolster compliance and identify fraudulent activities. "Since June 2023, the investigative agency has focused on identifying and apprehending the masterminds of syndicates operating nationwide. Advanced technical tools have aided in the data analysis, leading to the arrest of tax evaders," the ministry noted.

DGGI had launched a special drive in November 2020 to curb the practice of claiming fraudulent Input Tax Credit (ITC) and prevent revenue leakage. The drive remains active, and between April 2020 and September 2023, it has uncovered more than 6,000 fake ITC cases involving over Rs 57,000 crore in GST evasion, resulting in 500 arrests.

The tax syndicates commonly exploit unsuspecting individuals, enticing them with job offers, commissions, or loans to obtain their Know Your Customer (KYC) documents. These documents are then used to set up fraudulent firms or companies without the individual's consent. In some instances, people knowingly provide their KYC details in exchange for minor financial gains.

[The Business Standard]