DGGI Uncovers 99% Hike In GST Evasion, Detects Over ₹ 2 Lakh Crore Fraud In FY23-24

DGGI Uncovers 99% Hike In GST Evasion, Detects Over ₹ 2 Lakh Crore Fraud In FY23-24

The highest GST evasion was detected in the online gaming and casino industry, evading Rs 83,588 crore

Dharmesh ThakkarUpdated: Monday, April 08, 2024, 06:49 PM IST
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DGGI | File

A 99% spike in Goods and Service Tax (GST) has been detected by the Directorate General of GST Intelligence (DGGI) in 6,074 cases involving evasion of duty amounting to Rs 2,01,931 crore in the fiscal year 2023-24 compared to 4,872 cases detected of GST evasion of Rs 1,01,354 crore last financial year.

A total of Rs 26,598 crore was paid by the defaulting taxpayers voluntarily, accounting for about 1.4% of the total GST collections, and the tax evasion of Rs 2 lakh crore detected represents approximately 10% of the total GST collections in the previous financial year.

Tax Evasion Crackdown

DGGI arrested 147 individuals for tax evasion in 2023-24, with taxpayers voluntarily paying Rs 26,598 crore for GST evasions. Last fiscal year, 4,872 cases were detected of duty evasion amounting to Rs 1,01,354 crore, with 92 arrests and voluntary payment of Rs 20,713 crore made by taxpayers caught evading GST.

An internal analysis highlighted top sectors with maximum evasion recorded included banking, financial services, and insurance, pharmaceuticals, e-commerce operators, secondment (import of manpower services), online gaming, and casinos.

Highest Fraud Detected In Online Gaming And Casino Industry

The highest GST evasion was detected in the online gaming and casino industry, evading Rs 83,588 crore, followed by co-insurance or re-insurance sector with Rs 16,305 crore of evasion. DGGI identified major evasion from secondment (import of manpower services) with Rs 1,064 crore of detection.

DGGI's annual performance report card highlighted detection of 2,197 cases involving ITC fraud of Rs 21,089 crore, and errant taxpayers voluntarily paid Rs 2,577 crore, with 113 masterminds arrested for fake invoicing to claim tax credits.

DGGI Enhances GST Investigation

The investigation arm of GST used emerging technologies like 'Big Data Analytics' and 'Artificial Intelligence' to strengthen technical capabilities, apart from its existing cyber forensics infrastructure.

DGGI is in the process of setting up five digital forensic laboratories in Gandhinagar, New Delhi, Kolkata, Mumbai, and Chennai to strengthen technical resources aimed at further enhancing efforts in curbing tax leakage.

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