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 FY 2022-23, actual collections exceeded both Budget and Revised Estimates.
- FY 2023-24 saw 100.1% achievement of both estimates.
- However, FY 2024-25 recorded a slight shortfall, achieving 96.7% of its collection target.
GST Evasion on the Rise
- 91,370 cases of GST evasion were detected over the past five years, involving Rs 7.08 lakh crore worth of tax evasion.
- Only Rs 1.29 lakh crore was recovered through voluntary deposits.
- ITC fraud constituted a significant portion, with 44,938 cases totaling Rs 1.78 lakh crore in fraudulent claims.
Government's Anti-Evasion Measures
To tackle evasion and improve compliance, the government implemented:
- E-invoicing
- Advanced GSTN analytics
- Project Anveshan-leveraging Facial Recognition Systems and E-way bill data.
- Automated risk assessments, system-flagged anomalies, and targeted audits.
Despite these efforts, the Ministry acknowledged that it's difficult to precisely quantify the standalone impact of these tools due to external economic variables like consumption trends, global conditions, and changes in tax rates.
Conclusion
While the GST regime continues to strengthen India's indirect tax framework with improved collection efficiencies, the battle against evasion-especially ITC fraud-remains a growing concern. The data highlights the need for further tightening of compliance and analytics frameworks to ensure long-term revenue sustainability.
Official copy of the notification has been attached
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