The Directorate General of GST Intelligence (DGGI) has uncovered a record number of tax evasion cases for the first time, with approximately 6,084 cases involving Rs 2.01 lakh crore of Goods and Services Tax (GST) in the financial year (FY) 2023-24.

According to the DGGI’s annual report, the central investigation and anti-evasion arm of the GST, the sectors with the highest evasion were online gaming and BFSI (Banking, Financial Services and Insurance) in services, followed by iron, copper, scrap, and alloys in goods.

The evasion detected in FY24 is twice the amount reported in 2022-23, totalling Rs 1.01 lakh crore across 4,872 cases. In FY 2023-24, evaders voluntarily paid Rs 26,605 crore in due taxes, an increase from Rs 20,713 crore in FY 2022-23.

The report highlights that about 46% of the evasion cases were related to non-payment of tax (via clandestine supply and undervaluation), 20% involved fake Input Tax Credit (ITC), and 19% concerned the wrongful availment or non-reversal of ITC.

Online gaming had the most significant evasion in 2023-24, with Rs 81,875 crore evaded across 78 cases. This was followed by BFSI, which saw evasion of Rs 18,961 crore across 171 cases. Works contract services and pharmaceuticals reported 343 and 22 cases of evasion, with tax amounts of Rs 2,846 crore and Rs 40 crore, respectively.

Additionally, in 2023-24, the iron, copper, scrap, and alloys sectors saw 1,976 cases of GST evasion, involving Rs 16,806 crore in evaded taxes.

Pan masala, tobacco, cigarettes, and bidi ranked second, with 212 cases involving an evasion of Rs 5,794 crore. Plywood, timber, and paper accounted for 238 cases, amounting to Rs 1,196 crore in evaded taxes. Electronic items had 23 cases amounting to Rs 1,165 crore, followed by marble, granite, and tiles, with 235 instances totalling Rs 315 crore.

During the 2023-24 fiscal year, DGGI officers and Central GST zones identified a total GST evasion exceeding Rs 2.37 lakh crore across 20,576 cases. DGGI identified Rs 2.01 lakh crore in 6,084 cases, and CGST zones identified Rs 35,377 crore in 14,492 cases.

According to sources, the increasing trend of evasion is concerning, although the DGGI continues working diligently to curb revenue leakage.

Since the implementation of GST in 2017, the DGGI has consistently increased its detection of tax evasion, with Rs 7,879 crore detected in 2017-18, Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21, and Rs 50,325 crore in 2021-22, according to the report.

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