- GST theft of 2.37 lakh crores, money also sent abroad
M.Riyaz Hashmi | New Delhi GST (Goods and Services Tax) evasion figures have doubled in just one year. According to the current report of DGGI (Directorate General of GST Intelligence), GST evasion of 2.01 lakh crores has been caught in 2023-24. If Central GST amount is also added to this, the figure comes to Rs. 2.37 lakh crore, which is twice as much as last year. In his investigation, Bhaskar tried to find out who the big players are, where they are and how they are evading GST.
This game can be understood as such. Indian and foreign companies with online fantasy and spotters gaming have misclassified their services to DGGI's Mumbai zonal office. This has reduced their taxable income. When tax evasion of 57,108 crores was caught, these companies only paid Rs. The matter was settled by paying a voluntary amount of 30 crores. While insurance companies claimed ITC (Input Tax Credit) by taking fake invoices of expenses from marketing, advertising and manpower vendors. Rs. 2,426 crore out of tax evasion of Rs. Voluntary amount of 706 crores was paid. A network in the Gurugram unit had even sanctioned ITC claims of companies providing services with fake invoices, on the basis of which the turnover and share prices of the companies had increased.
The government treasury has been emptied in this way…somewhere fake claims are being taken by fake companies, somewhere registration is not done at all.
- Fake company invoices and ITC claims are reducing tax liability.
- Foreign companies associated with digital and e-commerce businesses do not require registration.
- Online platforms reduce the tax slab by misclassifying services.
- Most of the text theft has occurred by introducing betting and gambling into skill-based games. While this is a game like lucky draw.
Big gap in tax evasion and recovery…
- Fake invoice and ITC : Rs. 65 thousand crores tax was evaded but only Rs. 32 thousand crores have been recovered.
- Digital Services : Rs. 18 thousand crore tax evasion, only 9,500 crore was recovered.
- E-Commerce Sector: Rs. 10,500 crore was stolen, but only 5,200 crore was recovered.
Theft was big but action was taken small Showcause Notice : In 2023-24 Rs. 2,382 show cause notices have been issued for GST evasion of Rs 1.63 lakh crore. Only Rs. 12,944 crore has been recovered. Arrests and prosecutions: 147 key operators, masterminds and beneficiaries of GST evasion have been arrested. In many cases companies have taken a stand. Fake invoices and ITC : Insurance, Pharma. Action was taken against the company, in which Rs. 2,426 crore theft was caught.
Money is being sent to tax haven countries…Foreign companies have paid GST Rs. 57,830.43 crore, which is about 33% of the total tax evasion. This amount is being sent to the tax haven countries of Malta, Cyprus, Curacao and British Virgin Islands. Many companies from America, Australia, France and Netherlands got GST registration but Rs. 2,675 crore GST was stolen.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
