DGGI’s Efforts to Combat GST Evasion
In its mission to combat GST evasion across India, the Directorate General of GST Intelligence (DGGI) has achieved remarkable milestones from April 2020 to September 2023. DGGI’s vigilant approach has uncovered more than 6,000 cases of fraudulent Input Tax Credit (ITC) claims, which resulted in an astonishing GST evasion amounting to over Rs.57,000 crore. Additionally, they have successfully apprehended 500 individuals involved in these fraudulent activities.
Since June 2023, DGGI has been focused on identifying and dismantling the syndicates and masterminds behind these tax evasion schemes that operate nationwide. Leveraging data analysis and advanced technical tools, they have cracked down on tax evaders who exploit unsuspecting individuals by manipulating their KYC documents. These documents are then used to create fake or shell companies, often without the individuals’ knowledge or consent. In some instances, individuals were aware of their KYCs being used, albeit for small monetary gains.
In the ongoing financial year, 2023-24, DGGI has successfully detected 1,040 cases of fake ITC claims, amounting to a staggering Rs. 14,000 crores in GST evasion. They have apprehended 91 individuals involved in these fraudulent activities.
To effectively combat GST evasion, DGGI employs advanced data analytics tools and a comprehensive intelligence network across the nation to gather crucial information. In FY23-24, they have identified a substantial Rs. 1.36 lakh crore as overall GST evasion, inclusive of fake ITC cases. Remarkably, voluntary payments of Rs. 14,108 crores have been made in response to these detections, underscoring DGGI’s commitment to preserving government revenue.
The Directorate General of GST Intelligence continues to be at the forefront of the battle against GST evasion, employing innovative methods and unwavering determination to safeguard government revenue. Their relentless efforts are a testament to their pivotal role in maintaining the integrity of the GST system in India.
To access the press release of Ministry of Finance CLICK HERE
To access the GSTN Advisory Dt.17 October 2023 CLICK HERE
CBDT Notification No. 89/2023 Dt. 16 October 2023: Amendment in Rule 37BB