Trade mis-invoicing cost India $13 bn in tax revenues in 2016, says report

The findings are part of a report by Washington, DC-based think tank Global Financial Integrity

India is estimated to have lost $13 billion potential tax revenue in 2016, equivalent to a staggering 5.5 per cent of total government revenue collections back then, due to simple trade invoicing.

The findings, part of a report by Washington, DC-based think tank Global Financial Integrity (GFI), are set to worry policymakers who have increasingly tried to crack down on fraudulent tax practices. 

Trade misinvoicing involves both exporters and importers deliberately misreporting the value, quantity, or nature of goods or services in a commercial transaction and is treated as one of the most common forms of tax fraud by the government.

Of the