The Central Goods and Services Tax (CGST) officers detected GST evasion worth ₹1.88 lakh crore in 72,393 cases during April-December 2024, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday. During the same period, authorities arrested 132 individuals and recovered ₹20,128 crore.
Surge in GST Evasion Cases Over the Years
The latest data highlights a persistent challenge in tackling tax evasion. In the 2023-24 financial year, CGST officials uncovered GST evasion amounting to ₹2.30 lakh crore across 20,582 cases, leading to a recovery of ₹31,758 crore and 223 arrests. Comparatively, GST evasion detected in 2022-23 and 2021-22 stood at ₹1.32 lakh crore and ₹73,238 crore, respectively.
Government's Crackdown on Fake GST Registrations
In an effort to curb fraudulent claims and fake GST registrations, CGST and state GST officers conducted two special nationwide drives-one from May to August 2023 and another from August to October 2024.
- First drive (May-August 2023): Identified 21,808 non-existent GSTINs, leading to the detection of ₹24,357 crore in tax evasion. Eight individuals were arrested.
- Second drive (August-October 2024): Found 68,393 fake GSTINs and uncovered ₹25,346 crore in evasion. This resulted in 19 arrests.
GST Structure and Tax Rates
Under the GST framework, tax rates are categorized into four main slabs-5%, 12%, 18%, and 28%. Additionally, special rates apply to select goods, such as:
- Gold, silver, diamond, and jewellery: 3%
- Cut and polished diamonds: 1.5%
- Rough diamonds: 0.25%
- GST Compensation Cess: Levied on tobacco products, aerated drinks, and certain vehicles at varying rates.
Strengthening GST Compliance
The increasing scale of GST evasion cases highlights the need for stronger enforcement and digital monitoring. The government has been leveraging artificial intelligence and data analytics to track discrepancies and improve compliance. With continued crackdowns on fraudulent claims and stricter tax enforcement, authorities aim to enhance revenue collection and maintain tax transparency.
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