Days after government announcing record high Goods and Services Tax (GST) collections for the first time in two years, revenue intelligence wing of Central Board of Indirect Taxes and Customs (CBIC) and Directorate General of GST Intelligence (DGGI) is learnt to have detected 85.10 percent increase in tax evasion in FY19 as against last fiscal.
Sources told CNBC-TV18, that DG GST Intelligence in a recent detailed report to CBIC has said that it "detected 3,767 cases worth Rs 49,158 crore of tax evasion in FY19 as against 2,313 cases of Rs 26,557 crore in FY18, across India."
DGGI has detected GST, central excise and service tax evasion across India. DGGI is one of the major revenue intelligence wings of CBIC. Of this Rs 49,158 crore, the government detected Rs 27,378 crore of service tax evasion, Rs 19,396 crore of GST evasion and Rs 2,384 crore of central excise duty evasion, DGGI in its report said, a copy of which is reviewed by CNBC-TV18.
However, when it comes to the realisation of tax evasion, DGGI said that “tax realisation has increased by 306.76 percent in FY19 as against FY 18." “Of these 3,767 cases detected in FY19, intelligence wing realised Rs 11,853 crore in 2,522 cases against 1,453 cases of Rs 2,914 crore in FY18, across India,” the report added.
Meanwhile, CBIC chief in an internal communication has called for concentrated efforts to plug indirect tax evasion.
In the month of March 2019, DG GST Intelligence has detected duty/tax evasion of Rs 9,593 crore and had realised Rs 2,779 crore. Of this Rs 9,593 crore, GST evasion was worth Rs 8,624 crore and recovery of GST evasion was of Rs 2,421 crore, the report added.
"While the e-way bill has been successful in reducing some quantum of evasion, additional measures such as invoice matching, 360 degree profiling of taxpayer behaviour, comparison of GST data with import data, income tax data etc. are required to reduce evasion and make collections more robust," MS Mani, partner, Deloitte India said.
First Published: IST