GST Evasion Worth ₹14,302 Crore Detected, with ₹5,716 Crore Recovered in First Two Months
The Goods and Services Tax (GST) evasion in India has been a cause for concern, with the government taking strict measures to combat this issue. Finance Minister Nirmala Sitharaman recently revealed some alarming numbers regarding GST evasion, income tax evasion, and smuggling in the country.
According to the data presented by Sitharaman in the Lok Sabha, a total of 2,784 cases of GST evasion involving a staggering ₹14,302 crore were detected in the first two months of the current fiscal year. The government managed to recover ₹5,716 crore during this period, showcasing their determination to crack down on tax offenders.
Furthermore, the data also indicated that between the fiscal years 2020-21 and 2023-24 (April-May), GST evasion worth over ₹2.68 lakh crore was identified in 43,516 cases. The government managed to recover a substantial ₹76,333 crore during this period, and 1,020 individuals were arrested for their involvement in these cases.
In terms of income tax evasion, the Income Tax Department conducted searches on 3,946 groups over the past five years. These searches led to the seizure of assets worth ₹6,662 crore. In the fiscal year 2022-23 alone, the department conducted searches on 741 groups and seized assets amounting to ₹1,765.56 crore.
The Customs Department also played a vital role in uncovering cases of smuggling. In the last four years, they detected 42,754 cases of outright smuggling, involving a value of about ₹46,000 crore. In the current fiscal year, during the April-May period, the department identified 2,986 cases of smuggling, with goods valued at ₹1,031 crore being seized.
To combat tax evasion, the government has adopted various strategies. The Income Tax Department utilizes non-intrusive methods, such as data analytics, to detect tax evasion. Similarly, the GST department employs robust data analytics and artificial intelligence to identify and track risky taxpayers. They also share data with other law enforcement agencies to enable more targeted interventions.
Furthermore, the government has reduced the threshold limit for issuing e-invoices for business-to-business transactions from ₹10 crore to ₹5 crore, effective from August 1, 2023. This measure aims to further strengthen tax compliance and prevent evasion.
The Customs department, alongside the Directorate of Revenue Intelligence (DRI), actively works to detect and curb import-export-related commercial fraud. They employ data analysis-based risk management, intelligence development, and human intelligence to gather actionable information and detect tax evasion.
It is evident that the Indian government is steadfast in its efforts to curtail tax evasion and smuggling. The numbers provided by Finance Minister Nirmala Sitharaman reflect their proactive approach and determination to ensure compliance with tax regulations. These measures aim to create a fair and transparent taxation system, benefiting the Indian economy in the long run.
