99% Rise in GST Fraud: Rs 2 Lakh Crore Detected, 148 Arrests
In a stunning finding, the Directorate General of GST Intelligence (DGGI) discovered a huge 99% increase in GST fraud cases during the fiscal year 2023-24. The fraudulent operations reached Rs 2 lakh crore, leading the authorities to take immediate action.
DGGI recorded 6,074 cases of GST fraud in the fiscal year under review, a considerable rise from the 4,872 cases reported in the previous fiscal year 2022-23. In reaction to the detected fraud, taxpayers stepped forward and paid Rs 26,598 crore to the authorities.
The crackdown on GST fraudsters resulted in 148 arrests by DGGI in fiscal year 2023-24, a major rise over the previous year’s 92 arrests.
The significant increase in fraud cases is especially concerning because it accounted for roughly 10% of the entire GST collection of more than Rs 20 lakh crore over the same time.
According to DGGI data, the sectors with the highest incidences of GST fraud were banking, financial services, insurance, pharmaceuticals, e-commerce, human resource services, online gaming, and casinos.
A significant majority of fraud charges involve the misuse of the Input Tax Credit (ITC). In 2023-24, the DGGI identified 2,197 incidents of ITC fraud a total of Rs 21,089 crore. Taxpayers voluntarily paid Rs 2,577 crore, and the 113 masterminds behind these crimes were arrested. Notably, there has been a 60% increase in ITC fraud cases over the preceding year.
The authorities are making strong efforts to combat GST fraud and protect the tax system’s integrity. However, the worrying increase in fraudulent activity emphasizes the need for more vigilance and stronger enforcement tools to protect public funds and maintain fair trade practices.
