DGGI detected GST evasion of ₹1.36 trillion this year: Finance Ministry – Gudstory

In the last three and a half years, the investigating agency has found cases of large-scale tax evasion under a special operation.

The ministry said that from June 2023, DGGI has laid special emphasis on identifying and nabbing masterminds of syndicates operating across the country. It said cases have been solved using data analysis with the help of advanced technological tools, leading to the arrest of tax evaders.

These tax syndicates lure potential victims by promising them jobs, commission, bank loans, etc. for obtaining their ‘Know Your Customer’ (KYC) documents. These are used to create fake entities without their knowledge and consent, the ministry said. In some cases, such KYC details were used to access the information of the concerned person by paying them a small amount. A total of 1,040 cases related to fake input tax credit are involved in the current financial year. Rs 14,000 crore has been traced and 91 fraudsters have been caught, the ministry said.

The tax system is based on reporting of value addition and economic activity at every stage of the value chain, hence it is difficult for entities engaged in tax evasion to stay away from the radar of investigating agencies. Additionally, the reporting obligations of businesses have been continuously enhanced to ensure better monitoring of economic activity.

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Updated: October 19, 2023, 10:35 am IST