In the 2023-24 fiscal year, the Directorate General of GST Intelligence (DGGI) detected a staggering Rs 2.01 lakh crore in GST evasion across 6,084 cases, according to the agency's annual report. This marks a significant jump from Rs 1.01 lakh crore detected in 2022-23, highlighting an increasing trend in tax evasion post-GST rollout in 2017.
Key sectors contributing to this surge include online gaming and the Banking, Financial Services, and Insurance (BFSI) sectors. The online gaming industry alone accounted for Rs 81,875 crore in evasion across 78 cases, while the BFSI sector saw Rs 18,961 crore of tax evasion in 171 cases.
Goods-related industries were also heavily involved, with 1,976 cases of evasion detected in the iron, copper, scrap, and alloys sector, amounting to Rs 16,806 crore. The pan masala, tobacco, and bidi sector followed, with 212 cases leading to an evasion of Rs 5,794 crore. Other sectors like plywood, timber, paper, and electronic items also contributed to the evasion figures.
The DGGI report revealed that about 46% of these evasion cases were due to non-payment of tax through clandestine supplies and undervaluation, while 20% related to fake Input Tax Credit (ITC), and 19% involved the wrong availment or non-reversal of ITC.
In terms of voluntary tax compliance, businesses paid Rs 26,605 crore in taxes for FY24, an increase from Rs 20,713 crore in FY23.
The total GST evasion detected by both DGGI and Central GST zones combined reached over Rs 2.37 lakh crore in FY24, with 20,576 cases in total. This steady rise in evasion since GST’s implementation underscores the ongoing challenge of curbing tax fraud, with amounts detected increasing every year—from Rs 7,879 crore in 2017-18 to Rs 50,325 crore in 2021-22.
This report highlights the government's intensified efforts to crack down on GST evasion, particularly in high-risk sectors, while also emphasizing the need for continued vigilance in detecting fraudulent activities across industries.
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