100% Rise In GST Evasion Reported: Mumbai #1 City In Avoiding GST


Mohul Ghosh

Mohul Ghosh

Sep 16, 2024


The Directorate General of GST Intelligence (DGGI) detected tax evasion worth Rs 2.01 lakh crore in the financial year 2023-24. This marks a sharp increase from Rs 1.01 lakh crore detected in FY23, highlighting a significant rise in tax non-compliance. According to the DGGI’s latest annual report, 6,084 cases of GST evasion were uncovered in FY24, compared to 4,872 cases in the previous financial year.

100% Rise In GST Evasion Reported: Mumbai #1 City In Avoiding GST

Mumbai Tops GST Evasion Zones

Among the zones, Mumbai topped the list, accounting for Rs 70,985 crore of the total GST evasion detected. Other major zones include Delhi with Rs 18,313 crore, Pune with Rs 17,328 crore, Gurugram with Rs 15,502 crore, and Hyderabad with Rs 11,081 crore. These cities collectively represent a substantial portion of GST evasion across the country.

Key Sectors Prone to GST Evasion

The DGGI report highlighted that the real money online gaming sector registered the highest GST evasion in services, amounting to Rs 81,875 crore in 78 cases. This was followed by the banking, financial services, and insurance (BFSI) sector, which recorded evasion worth Rs 18,961 crore in 171 cases. Additionally, sectors like works contract services and pharmaceuticals also reported significant evasion.

Goods Sectors with High Evasion

In terms of goods, the iron, copper, scrap, and alloys sectors saw 1,976 cases of GST evasion, totaling Rs 16,806 crore. The pan masala, tobacco, cigarette, and bidi sectors came second, with Rs 5,794 crore in evasion. Other goods sectors, including plywood, timber, paper, and electronics, also reported significant evasion cases.

Steady Rise in GST Evasion Detection

Since the introduction of GST in 2017, the detection of tax evasion has been steadily increasing. In 2017-18, Rs 7,879 crore was detected, and the figure has consistently risen each year, reaching Rs 50,325 crore in 2021-22. This upward trend demonstrates the growing focus on identifying and curbing tax evasion under the GST regime.

Conclusion

The sharp rise in GST evasion, especially in key sectors like gaming and BFSI, emphasizes the need for stricter enforcement of tax regulations. With the DGGI continuing to uncover large-scale non-compliance, further efforts are likely to focus on curbing evasion in both goods and services sectors.


Mohul Ghosh
Mohul Ghosh
  • 1649 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online