GST Evasion Hits ₹1.95 Lakh Crore: How the Govt Is Fighting Back

Tax evasion has been a persistent challenge for the government, with fraudulent activities leading to significant revenue losses. In the ongoing fiscal year (April 2024–January 2025), Central GST (CGST) officers detected tax evasion amounting to a staggering ₹1.95 lakh crore across 25,397 cases.

This was revealed in Parliament, highlighting the scale of the issue and the government’s active measures to curb such fraudulent activities.

Tax Evasion Cases Over the Years

The government has been battling tax evasion with increasing vigilance. Over the past 5 years, CGST officers have detected 86,711 cases of evasion, amounting to more than ₹6.79 lakh crore. In the current fiscal year alone, the number of cases stands at 25,397, with voluntary tax deposits reaching ₹21,520 crore.

One of the most concerning aspects of tax evasion is Input Tax Credit (ITC) fraud. In the current fiscal year, 13,018 ITC fraud cases have been identified, involving ₹46,472 crore. Out of this, a voluntary deposit of ₹2,211 crore has been made.

Government’s Response and Preventive Measures

To tackle GST fraud and improve compliance, the Central Government and GST Network (GSTN) have implemented several initiatives, including:

• Enhanced Intelligence Inputs: Authorities now have access to real-time intelligence reports, enabling them to identify tax evaders quickly.
• Fraudulent Registration Detection: The government is scrutinising suspicious taxpayer registrations to curb misuse.
• E-way Bill Monitoring: Authorities are tracking e-way bills to identify irregularities in goods movement and potential fraud.
• Return Scrutiny and Audits: Taxpayers are selected for audits based on risk parameters, improving overall compliance.

Project Anveshan – A Game Changer

A key initiative in detecting tax evasion is Project Anveshan (Analytics, Verification, Shortlisting of Anomalies). This program uses advanced analytics and modern techniques such as:

• Facial Recognition System (FRS): Helps verify identities and detect fraudulent registrations.
• E-way Bill Data Analysis: Identifies suspicious transactions and discrepancies in movement of goods.
• AI-driven Intelligence Reports: Uses big data to track fraudulent activities early.

Conclusion

GST evasion remains a major concern, but with initiatives like Project Anveshan and enhanced monitoring mechanisms, authorities are making significant progress in identifying and preventing fraud.

The ongoing crackdown highlights the importance of compliance and the government’s commitment to a transparent and efficient tax system.

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