• Notification Date: 12-01-2024
• Notification No: N/A

GST Intelligence Unit detected over Rs 1.98 lakh crore Tax Evasion Cases, ITC Fraud of Rs 21,078 crore in 2023

The GST intelligence unit uncovered tax evasion of more than Rs 1.98 lakh crore last year and arrested 140 masterminds involved in looting the exchequer, the Ministry of Finance said in a statement on Thursday. The Directorate General of GST Intelligence (DGGI) discovered major GST evasion in a variety of sectors in 2023, including online gambling, casinos, insurance, and secondment (import of labour services), it added. 

The ministry said in a statement, "DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs 1,98,324 crore with a voluntary payment of Rs 28,362 crore. 140 masterminds involved in GST evasion were arrested."   

This is a huge improvement over 2022, when 4,273 cases were discovered, resulting in duty of Rs 90,499 crore, voluntary payment of Rs 22,459 crore, and 97 arrests. 

The amount of duty evasion detected by DGGI increased by 119 per cent year on year, while voluntary payments increased by 26 per cent, according to the ministry. 

In terms of detecting bogus Input Tax Credit (ITC) claims, the ministry stated that DGGI has launched a specific campaign against ITC fraudsters in order to stop the government revenue leakage.   

As a result, there were 2,335 cases of ITC fraud totalling Rs 21,078 crore, with a voluntary payment of Rs 2,642 crore. 

According to the report, 116 masterminds were apprehended to combat the threat of fraudulent invoicing. This is a huge improvement over 2022, when 1,646 cases were found, totalling Rs 14,471 crore, with a voluntary payment of Rs 1,604 crore made. A total of 82 masterminds were apprehended. 

"During the year 2023, DGGI, which is the premier investigating agency for GST matters, continued its relentless pursuit to check evasion of GST across the country... Non-compliance in these sectors not only pose a threat to the fiscal stability but also involve potential social, financial as well as economic security implications," the ministry added.