GST evasion: Taxmen to use data analytics in a bid to curb tax evasion in supply chain

GST evasion detection by tax officers almost doubled year-on-year to over Rs 1.01 lakh crore in FY23, while Rs 21,000 crore was recovered by the DGGI.

The total number of GST evasion cases too had gone up — 14,000 cases were detected in 2022-23, up from 12,574 in 2021-22 and 12,596 in 2020-21.

As per the PTI report, the defaulters adopt various tactics such as short payment of tax by undervaluing taxable goods and services, wrong availment of exemption notifications, wrong availment of the input tax credit, non-payment of tax on supply of taxable goods and services (clandestine removal), and fraudulent availment of the input tax credit on the basis of invoices from fake firms.

In a reply to the Lok Sabha last month, the Finance Ministry had said said total GST evasion detected between July 2017 to February 2023 was close to Rs 3.08 lakh crore, of which over Rs 1.03 lakh crore was recovered. GST authorities arrested 1,402 persons for evading taxes in the last five-and-a-half years till February 2023.