Directorate General of GST Intelligence (DGGI), the premier investigating agency for GST matters, uncovered substantial instances of evasion across various sectors during the year 2023. Notable sectors affected include Online Gaming, Casinos, the Insurance sector, Secondment (import of Manpower Services), and cases involving Fake Input Tax Credit (ITC). Non-compliance in these sectors not only jeopardises fiscal stability but also poses potential threats to social, financial, and economic security.
The relentless efforts of DGGI have resulted in a marked increase in performance, demonstrating the agency’s dedication to tackling tax evasion.
Detection of Duty Evasion and Voluntary Payments:
In 2023, DGGI detected a total of 6,323 cases involving evasion of duty amounting to Rs. 1,98,324 crore, with a commendable voluntary payment of Rs. 28,362 crore. This signifies a significant improvement over the previous year (2022) where 4,273 cases were detected, amounting to duty evasion of Rs. 90,499 crore, and voluntary payments of Rs. 22,459 crore.
Notably, 140 masterminds involved in GST evasion were apprehended, reflecting a 119% increase in the Year-on-Year amount of duty evasion detected by DGGI and a 26% increase in voluntary payments.
Performance in Fake Input Tax Credit (ITC) Cases:
Addressing the menace of fake invoicing, DGGI initiated a Special Drive against ITC fraudsters, resulting in the detection of 2,335 cases involving ITC fraud amounting to Rs. 21,078 crore. Voluntary payments of Rs. 2,642 crore were made, and 116 masterminds were arrested. This marks a significant improvement compared to the previous year (2022), where 1,646 cases were detected, totaling Rs. 14,471 crore, with voluntary payments of Rs. 1,604 crore, and 82 masterminds arrested. There is a 46% increase Year-on-Year in the amounts of duty evasion detected and a 65% increase in voluntary payments made in fake invoicing cases.
DGGI’s performance underscores its commitment to fairness, transparency, and compliance within the GST system. The agency remains dedicated to upholding the principles of the GST Laws and Rules, ensuring a level playing field for compliant businesses, and maintaining the integrity of the GST framework.
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