The Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of evasion in 2023-24, amounting to Rs 2.01 lakh crore, which is double the amount detected in the previous fiscal, data sourced from DGGI annual report of FY24 showed.
The report shows that online gaming, BFSI are the sectors most prone to evasion. In FY24, Rs 81,875 crore evasion was detected in the “real money online gaming” sector, and Rs 18,961 crore in BFSI.
Among goods, iron, copper, scrap and alloys are the ones most prone to evasion (Rs 16,806 crore), followed by pan masala, tobacco, cigarette and beedi (Rs 5,794 crore), said the report.
In FY24, voluntary taxes of Rs 26,605 crore were paid, up from Rs 20,713 crore in 2022-23.
Further, about 46% of the evasion cases related to non-payment of tax (through clandestine supply and undervaluation), 20% related to fake input tax credit, and 19% to wrong availment/non-reversal of ITC, the report said.
The detection of GST evasion by DGGI has gradually seen an increase since the rollout of GST in 2017. In FY18, Rs 7,879 crore was detected, followed by Rs 19,319 crore in FY19. FY20 saw an evasion of Rs 21,739 crore in 2019-20, and FY21 of Rs 31,908 crore. In FY22, GST evasion worth Rs 50,325 crore was detected, the report showed.
The report said the DGGI’s use of data analytics has unveiled new tax evasion tactics, enabling targeted enforcement actions.
On the online gaming industry, the report said bringing the e-gaming entities under the tax net continues to be an ‘uphill task’. It said many firms are set up in offshore tax havens, which makes it difficult for the authorities to ascertain their ultimate ownership.
These online gaming platforms keep on changing their URL/websites to avoid tax compliance.
Therefore, a multipronged approach to deal with this sector is the need of the hour, said the DGGI.
An inter-department committee comprising CBIC, CBDT, MeiTY, MCA, RBI, and department of consumer affairs, and industry bodies may be set up to develop a comprehensive strategy to combat proliferation of such platforms, it said.
The DGGI mentioned that for the retrospective online gaming cases, which are of the date prior to October 1, actions have been initiated against 118 domestic entities, and a total 34 show-cause notices have been sent, amounting to Rs 1.11 lakh crore.