GST evasion of Rs 7,421 cr detected in Q1, Rs 1.9K cr recovered: MoS Finance

Goods and Services Tax (GST) authorities recovered Rs 1,900 crore of tax evasion throughout the April-June quarter of the continuing 2021-22 monetary yr, Minister of State for Finance Pankaj Chaudhary stated through a written reply in Rajya Sabha on Tuesday. Tax evasion amounting to Rs 12,235 crore was recovered in 2020-21 and Rs 18,464 crore in 2019-20.
According to the info shared by the Finance Ministry, 1,580 circumstances of tax evasion had been detected until June amounting to Rs 7,421.27 crore price of evasion.
Chaudhary stated tax evaders are recognized to commit fraud “even on electronic platforms by way of misrepresentation of facts like furnishing of fake credentials at the time of registration; by indulging in raising fake invoice to avail under input tax credits (ITC); misdeclaration of classification etc.”
The Minister added the evasion could also be dedicated deliberately and at occasions non-payment of tax could occur as a consequence of human error however no evasion of tax has been reported as a consequence of failure within the CBIC back-end system.

Tax authorities are matching e-way invoice and RFID information, matching ITC as per GSTR 2A/3B towards the ITC taken by a taxpayer in GSTR 3B together with matching of gross sales reported by a taxpayer in its GSTR 1 as towards tax paid in GSTR 3B. It has additionally launched Aadhaar authentication for processing of latest registration purposes together with bulk cancellation of registration of taxpayers who did not file GSTR 3B returns for six or extra consecutive months.