Government Detects Over Rs 21,000 Crore Of Indirect Tax Evasion So Far This Year

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Detection of indirect tax evasion by the government has more than doubled in the first five months of the current financial year as compared with the corresponding period a year ago as the tax department resumed scrutiny to detect tax evasion, according to official documents reviewed by BloombergQuint. The department had gone slow on detection last year after the Goods and Services Tax was introduced and focus was more on ensuring stability of the new indirect tax regime from July 2017, said a senior official on the condition of anonymity.

The Directorate General of Goods and Services Tax Intelligence has detected indirect tax evasion to the extent of Rs 18,656 crore in April-August 2018 as compared with Rs 7,031 crore detected for the same period last year.The evasion detected by DGGSTI increased to Rs 21,869 crore as on Sept. 14, 2018, according to the documents. Nearly Rs 3,000 crore detected was attributed to GST cases. The comparative figures for corresponding period last year wasn’t readily available.

The rise in detection in the first half of this fiscal also reflects the scrutiny made during the year ended March 2018 by the tax department. Generally, tax detections are an ongoing and concurrent process, but in the last financial year it couldn’t undertake detections since the department transitioned to the GST and efforts were made to stabilise the new process, the official cited earlier said.

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