GST investigation arm DGGI (Directorate General of Goods and Services Tax Intelligence) has detected 6,084 cases of GST evasion worth Rs 2.01 lakh crore in the financial year 2023-24. This amount is double the GST evasion of Rs 1.01 lakh crore detected in 4,872 cases during 2022-23. During the investigation, online gaming, BFSI in services and iron, copper, scrap, alloy sectors in goods have emerged as the sectors most prone to tax evasion.
Apart from this, voluntary taxes of Rs 26,605 crore were paid in the financial year 2023-24. This figure was Rs 20,713 crore in the financial year 2022-23. According to the annual report of DGGI, about 46 percent of the cases of tax evasion are related to non-payment of tax (through secret supplies and undervaluation). Apart from this, 20 percent of the cases are related to fake input tax credit (ITC) and 19 percent of the cases are related to misuse/non-reversal of ITC.
Most theft in online gaming sector
The report said that during the financial year 2023-24, the highest tax evasion was found in the online gaming sector, amounting to Rs 81,875 crore in 78 cases. This was followed by the Banking, Financial Services and Insurance (BFSI) sector, in which tax evasion of Rs 18,961 crore was detected in 171 cases. Tax evasion of Rs 2,846 crore was detected in 343 cases in work contract services and Rs 40 crore in 22 cases in the pharma sector.
1,976 cases of GST evasion were detected in iron, copper, scrap and alloy sectors, involving tax evasion of Rs 16,806 crore. Tax evasion of Rs 5,794 crore was detected in 212 cases in pan masala, tobacco, cigarette and bidi industry. 238 cases of tax evasion of Rs 1,196 crore were detected in plywood, wood and paper. 23 cases of tax evasion of Rs 1,165 crore were detected in electronic items; 235 cases of tax evasion of Rs 315 crore were detected in marble, granite and tiles.
This city tops in tax evasion
A total of Rs 70,985 crore GST evasion was detected in Mumbai in FY 2024. This was followed by Rs 18,313 crore in Delhi, Rs 17,328 crore in Pune, Rs 15,502 crore in Gurugram and Rs 11,081 crore in Hyderabad.
