Remarkable strides have been taken in curbing GST evasion, as revealed by a recent report highlighting the fiscal year of 2022-23. A substantial increase is evident, with tax officers successfully identifying instances of evasion amounting to over ₹1.01 lakh crore, marking a nearly twofold surge compared to the previous year.
The Directorate General of GST Intelligence (DGGI) deserves commendation for its diligent efforts in the fiscal year preceding this one, where a significant recovery of ₹21,000 crore was accomplished. In a display of astute governance, the authorities managed to bridge the gap between tax evasion and enforcement, leading to this substantial reclamation.
The approach to enhancing compliance has been comprehensive and technologically driven. By harnessing the power of data analytics and combining it with human intelligence, the government is actively targeting fraudulent activities. The results are evident in the impressive detection of evasion, amounting to ₹1,01,300 crore in the span of 2022-23. Out of this, a substantial sum of ₹21,000 crore has already been successfully retrieved, underlining the effectiveness of the measures in place.
In juxtaposition, the investigative prowess of DGGI in the preceding year, 2021-22, is noteworthy. Detecting evasion worth over ₹54,000 crore and subsequently recouping more than ₹21,000 crore in taxes exhibits a consistent pattern of diligent work by the agency operating under the ambit of the Goods and Services Tax (GST) regime.
The current fiscal year has witnessed a rise in the number of identified GST evasion cases, indicative of the ongoing commitment to eradicating such practices. The figures speak for themselves, with 2022-23 uncovering around 14,000 cases, an increase from the 12,574 cases in 2021-22 and 12,596 cases in 2020-21. This escalation further underscores the government’s resolve in tackling tax evasion head-on.
Diving into the modus operandi employed by those attempting to evade taxes, several tactics have been observed. These include underreporting the value of taxable goods and services to lower tax payments, incorrectly availing exemption notifications, wrongfully claiming input tax credit, evading tax on the supply of taxable goods and services through clandestine removal, and exploiting the system by availing input tax credit based on invoices issued by fictitious entities.
This vigorous response to tax evasion is not isolated but rather part of a broader timeline. The Finance Ministry’s recent response to the Lok Sabha revealed that GST evasion detected from July 2017 to February 2023 amounted to a substantial ₹3.08 lakh crore, an issue that has not gone unaddressed. Impressively, over ₹1.03 lakh crore of the evaded amount has been successfully recovered. Additionally, the authorities have demonstrated their commitment through legal actions, resulting in the arrest of 1,402 individuals over the last five and a half years until February 2023.
The current drive against GST evasion serves as a testament to the efficacy of diligent tax enforcement, propelled by a blend of advanced technological tools and human acumen. It is a journey marked by continuous learning, adaptation, and steadfast commitment to ensuring a just and equitable tax system.
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