Sun Sep 15 15:17:24 UTC 2024: ## GST Evasion Soars to Record High in FY24: DGGI

**New Delhi:** The Directorate General of GST Intelligence (DGGI) has reported a staggering surge in Goods and Services Tax (GST) evasion during the financial year 2023-24, reaching a record Rs 2.01 lakh crore. This represents nearly double the amount detected in the previous fiscal year.

The DGGI report identifies the online gaming and banking, financial services, and insurance (BFSI) sectors as the most susceptible to GST evasion. Online gaming alone accounted for a whopping Rs 81,875 crore in evasion, while the BFSI sector saw Rs 18,961 crore in discrepancies.

Among goods, the iron, copper, scrap, and alloys sector faced the highest tax evasion with Rs 16,806 crore. This was followed by pan masala, tobacco, cigarette, and beedi with Rs 5,794 crore.

Mumbai emerged as the city with the highest number of GST evasion detection cases, totaling Rs 70,985 crore. It was followed by Delhi, Pune, Gurugram, and Hyderabad.

The DGGI reported that voluntary payments in these cases amounted to Rs 26,605 crore in 4,520 cases, compared to Rs 20,713 crore in 3,683 cases in FY23. The most common reasons for evasion included non-payment of tax (46%), fake input tax credit (20%), and wrong availment/non-reversal of ITC/blocked credit (19%).

Overall, the total GST evasion detected by DGGI officers and the Central GST zones for FY24 reached over Rs 2.37 lakh crore across 20,576 cases.

The report highlights the increasing challenge of GST enforcement and emphasizes the need for stricter measures to curb tax evasion.

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