As many as 2,784 cases of Goods and Services Tax (GST) evasion, amounting to ₹14,302 crore, were detected in the first two months of the current fiscal year, according to Finance Minister Nirmala Sitharaman. In a written reply to the Lok Sabha, Sitharaman provided details on GST and income tax evasion, as well as the detection of smuggling by the Customs department.
Between 2020-21 and 2023-24 (April-May), over ₹2.68 lakh crore of GST evasion was detected in 43,516 cases. During this period, a recovery of ₹76,333 crore was made, and 1,020 arrests were made.
In the current fiscal year (April-May), 2,784 cases of GST evasion worth ₹14,302 crore were detected, leading to the arrest of 28 individuals and recovery of ₹5,716 crore.
The data from the Income Tax Department revealed that searches were conducted on 3,946 groups in the last five years, resulting in the seizure of assets worth ₹6,662 crore. In FY23 alone, 741 groups were searched, and assets worth ₹1,765.56 crore were seized.
The Customs department detected 42,754 cases of outright smuggling in the last four years, with a value of approximately ₹46,000 crore. In the April-May period of the current fiscal year, 2,986 cases of smuggling involving goods valued at ₹1,031 crore were detected.
Additionally, 12,259 cases of commercial fraud were detected in the last four years, with a duty implication of ₹21,225 crore.
Sitharaman highlighted the use of non-intrusive methods by the Income Tax Department to detect tax evasion, thanks to the availability of electronic information. The GST department is also taking measures to tackle evasion, including utilizing data analytics and artificial intelligence to identify risky taxpayers, sharing data with law enforcement agencies for targeted interventions, and reducing the threshold limit for e-invoice issuance for B2B transactions.
The Central Board of Indirect Taxes and Customs, along with the Directorate of Revenue Intelligence, is actively involved in detecting and curbing import-export related commercial frauds.
Sitharaman stated that the use of data analysis-based risk management and intelligence development, along with human intelligence, has resulted in significant detections of tax evasion in recent years.
It is clear from the data provided that tax evasion remains a pressing issue in India. The government’s efforts to combat these practices are commendable, and the use of technological advancements such as data analytics and artificial intelligence is crucial in identifying and penalizing those involved in evasion.
However, it is important to continue strengthening these measures and implementing stricter registration processes to prevent fraudulent activities. A balanced approach that combines non-intrusive methods of detection with targeted interventions can help curb tax evasion effectively.
Overall, addressing tax evasion requires a multi-faceted approach that involves collaboration between different departments and agencies, leveraging technology, and ensuring a robust legal framework to deter potential offenders. The government’s commitment to tackling tax evasion is evident, and with continued efforts, it is hoped that these practices can be significantly reduced in the future.
