 "Rs 2 trn GST evasion detected in FY24, online gaming most prone to evasion")
Investigation arm DGGI has detected 6,084 cases involving Rs 2.01 trillion of GST evasion in 2023-24 fiscal, with online gaming and BFSI in services and iron, copper, scrap and alloys in goods emerging as the sectors most prone to evasion.
The amount is double of over Rs 1.01 trillion detected in 2022-23 in 4,872 cases.
Out of these, voluntary taxes of Rs 26,605 crore was paid in 2023-24, up from Rs 20,713 crore in 2022-23.
As per the annual report of the Directorate General of GST Intelligence (DGGI), about 46 per cent of the evasion cases related to non-payment of tax (through clandestine supply and undervaluation), 20 per cent related to fake Input Tax Credit (ITC), and 19 per cent to wrong availment/non-reversal of ITC.
In 2023-24, online gaming sector saw maximum evasion with Rs 81,875 crore in 78 cases, followed by Banking, Financial and Insurance (BFSI) with Rs 18,961 crore evasion in 171 cases. Works contract services and pharmaceutical had 343 cases and 22 evasion cases with tax evasion involving Rs 2,846 crore and Rs 40 crore, respectively.
In 2023-24, 1,976 cases of Goods and Services Tax (GST) evasion were detected in iron, copper, scrap and alloys sectors involving Rs 16,806 crore of tax evaded.
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Pan masala, tobacco, cigarette and bidi came second with 212 cases involving an evasion of Rs 5,794 crore. Plywood, timber and paper had 238 cases involving tax evasion of Rs 1,196 crore. Electronic items saw 23 cases (Rs 1,165 crore), followed by marble, granite and tiles 235 cases (Rs 315 crore).
During 2023-24 fiscal, the total GST evasion detected by DGGI officers and Central GST zone was over Rs 2.37 trillion in 20,576 cases. This includes Rs 2.01 trillion detected by DGGI in 6,084 cases and Rs 35,377 crore by CGST zones in 14,492 cases.
The detection of GST evasion by DGGI has been steadily rising since the roll-out of GST in 2017. In 2017-18, Rs 7,879 crore was detected, followed by Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21 and Rs 50,325 crore in 2021-22.
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