GST Evasion of ₹7.08 Lakh Crore Detected in Five Years – What You Need to Know

The Government of India has been actively combating GST evasion, and recent data reveals a staggering amount of evasion detected in just five years. According to official sources, GST evasion totaling ₹7.08 lakh crore has been identified, including an input tax credit fraud of ₹1.79 lakh crore. This highlights the scale and seriousness of tax evasion under the GST regime.

What is GST Evasion?

GST evasion refers to illegal practices by businesses or individuals to avoid paying the Goods and Services Tax (GST) or to claim undue benefits. This includes underreporting sales, inflating purchases, or fraudulent claims of input tax credit (ITC), among other tactics.

The Alarming Figures for 2024-25

In the fiscal year 2024-25 alone, CGST field officers have detected more than ₹2.23 lakh crore worth of GST evasion. These figures were shared by the Minister of State for Finance, Pankaj Chaudhary, in the Lok Sabha, underscoring the vigilance of tax authorities and their efforts to plug loopholes.

What Does This Mean for Businesses?

  • Increased Scrutiny: Tax authorities are intensifying audits and investigations to curb evasion, which means businesses need to ensure their GST filings are accurate and compliant.

  • Severe Penalties: Businesses found guilty of evasion can face hefty penalties, fines, and even legal action, which could severely impact their operations and reputation.

  • Input Tax Credit (ITC) Vigilance: Fraudulent claims of ITC are a major contributor to GST evasion. Companies must maintain proper documentation and verify the authenticity of ITC claims to avoid penalties.

How Can Businesses Stay Compliant?

  1. Maintain Accurate Records: Ensure all sales, purchases, and invoices are correctly recorded and match the GST returns filed.

  2. Reconcile ITC Claims: Verify the eligibility and accuracy of ITC claimed by cross-checking with suppliers’ data.

  3. Timely Filing: Submit GST returns on time to avoid penalties and reduce the risk of scrutiny.

  4. Professional Assistance: Engage tax professionals or consultants to review your GST compliance and assist in audits.

How Taxla Services Can Help

At Taxla Services, we specialize in providing expert income tax and GST consultancy. Our experienced practitioners help businesses:

  • Stay updated with the latest GST laws and notifications

  • Ensure accurate and timely GST return filing

  • Conduct pre-audit compliance checks to avoid penalties

  • Assist during GST audits and investigations

Don’t let GST evasion issues threaten your business. Ensure full compliance and safeguard your operations with Taxla Services.

Contact Us Today

📞 +91 7305701454
📧 auditsiva2@gmail.com
🌐 www.taxlaservices.com

Stay Informed, Stay Compliant!

#BestAuditorInChengalpattu #GSTUpdate #TaxNews #TaxlaServices #FinanceUpdate #GSTEvasion #TaxCompliance



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