Over 91,000 GST Evasion & 44,000 ITC Fraud Cases Detected in 5 Years, Says Finance Ministry



Quick Summary
The Ministry of Finance has revealed a significant increase in GST evasion and Input Tax Credit (ITC) fraud over the last five years, with over 91,000 evasion cases and 44,000 ITC fraud cases detected. Despite these challenges, GST collections have largely met or exceeded targets, demonstrating improved efficiency in the tax system. The government is employing measures like e-invoicing and advanced analytics to combat evasion, though quantifying their exact impact remains difficult.

In a written response to the Lok Sabha, the Ministry of Finance revealed that while GST collections have consistently met or exceeded targets in recent years, there has also been a significant rise in tax evasion cases-particularly involving ITC fraud. Key Highlights from the Ministry's Reply GST Collection Trends (FY 2020-21 to 2024-25) The actual net Central GST collection rose from Rs 5.48 lakh crore in FY 2020-21 to a provisional Rs 10.26 lakh crore in FY 2024-25. In FY 2021-22 and F
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FAQ :

Over the past five years, 91,370 cases of GST evasion have been detected.

The total value of tax evasion detected amounts to Rs 7.08 lakh crore.

A significant portion of the detected cases involved ITC fraud, with 44,938 instances identified.

The fraudulent ITC claims amounted to Rs 1.78 lakh crore.

The government is implementing e-invoicing, advanced GSTN analytics, Project Anveshan (using facial recognition and E-way bill data), automated risk assessments, and targeted audits.

Yes, GST collections have consistently met or exceeded targets in recent years, with provisional net Central GST collection rising from Rs 5.48 lakh crore in FY 2020-21 to Rs 10.26 lakh crore in FY 2024-25.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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