DGGI flagged 46% surge in evasion cases worth Rs 1.98 trillion in 2023

140 masterminds behind GST evasion cases and 116 behind ITC frauds were arrested in 2023

During the calendar year 2023, the Directorate General of GST Intelligence (DGGI) detected a 46 per cent rise in cases of duty evasion, amounting to 6,323 cases valued at Rs 1,98,324 crore with a voluntary payment of Rs 28,362 crore. 140 people involved in goods and services tax (GST) evasion cases were also arrested during the year, according to a release by the Ministry of Finance on Thursday.

Significant GST evasion cases were observed across sectors, including online gaming, casinos, insurance sector, secondment (import of manpower services), and fake input tax credit (ITC), among others.

Compared to the preceding year, 2022, 4,273 cases of duty evasion were detected, involving Rs 90,499 crore, along with a voluntary payment of Rs 22,459 crore and 97 arrests. The year-on-year (Y-o-Y) increase is an impressive 119 per cent in the amount of duty evasion identified by DGGI and a substantial 26 per cent increase in voluntary payments.

In the realm of fake ITC cases, DGGI initiated a special drive against ITC fraudsters to curb revenue leakage. This initiative resulted in the detection of 2,335 cases involving ITC fraud of Rs 21,078 crore, with a commendable voluntary payment of Rs 2,642 crore.

The Y-o-Y analysis reported a 65 per cent increase in voluntary payments made in fake invoicing cases, compared to 1,646 cases detected in 2022. ITC frauds in 2022 amounted to Rs 14,471 crore, with voluntary payment of Rs 1,604 crore, and a total of 82 masterminds arrested.

In 2023, 116 masterminds behind fake invoicing were arrested, demonstrating significant improvement in combating ITC fraud.