DGGI finds GST evasion of Rs 2.01 lakh crore in fiscal 2024; highest cases of tax evasion detected in online gaming and BFSI sectors

The Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of tax evasion amounting to Rs 2.01 lakh crore during the fiscal year 2023-24. As per its findings, online gaming, BFSI services sector, iron, copper, scrap and alloys sector in the goods sector were found to be the most vulnerable to tax evasion.

This amount is double the over Rs 1.01 lakh crore detected in 2022-23 in 4,872 cases. Of this, voluntary taxes of Rs 26,605 crore were paid in 2023-24, as against Rs 20,713 crore in 2022-23.

According to the annual report published by DGGI, around 46 per cent of tax evasion cases involved non-payment of tax (through illegal supplies and under-declaration), 20 per cent involved bogus Goods and Services Tax (ITC) and 19 per cent involved misuse/non-reversal of ITC.

During 2023-24, the online gaming sector recorded the highest tax evasion cases amounting to Rs 81,875 crore in 78 cases, while the banking, finance and insurance (BFSI) sector saw tax evasion of Rs 18,961 crore in 171 cases. The contract services and pharmaceutical sectors saw 343 cases, and in 22 cases, tax evasion of Rs 2,846 crore and Rs 40 crore, respectively.

During 2023-24, 1,976 cases of GST evasion were detected in the iron, copper, scrap and alloys sectors, taking the total amount of tax evasion to Rs 16,806 crore.

Pan masala, tobacco, cigarettes and bidi came second with 212 cases involving tax evasion of Rs 5,794 crore. Plywood, wood and paper had 238 cases involving tax evasion to the tune of Rs 1,196 crore. Electronic items had 23 cases (Rs 1,165 crore), followed by marble, granite and tiles with 235 cases (Rs 315 crore).

During fiscal 2024, the total amount of GST evasion detected by DGGI and Central GST zone officials was over Rs 2.37 lakh crore in 20,576 cases. This includes Rs 2.01 lakh crore detected by DGGI in 6,084 cases and Rs 35,377 crore detected by CGST zones in 14,492 cases.

The number of GST evasion detections by DGGI has been steadily increasing since the introduction of GST in 2017. In 2017-18, it was detected at Rs 7,879 crore, in 2018-19, it was Rs 19,319 crore, in 2019-20, it was Rs 21,739 crore, in 2020-21, it was Rs 31,908 crore and in 2021-22, it was Rs 50,325 crore.

(With tips from PTI)