Breaking: GST Evasion Amounting to ₹1.51 Trillion Detected: 71 Notices Issued to Online Gaming Firms: In a significant revelation, the Finance Ministry has disclosed that Goods and Services Tax (GST) authorities have identified tax evasion amounting to ₹1.51 lakh crore until October in the fiscal year 2023-24. This alarming discovery has prompted the authorities to take stringent actions against offenders, particularly in states such as Maharashtra, Haryana, and Gujarat, where the evasion has been notably high.
The Finance Ministry’s data further indicates that 71 show cause notices have been issued to online gaming companies, accusing them of GST evasion exceeding ₹1.12 lakh crore during the financial years 2022-23 and 2023-24. This development sheds light on the growing concern around tax compliance within the burgeoning online gaming industry.
Under a specialized initiative, GST authorities have successfully detected tax evasion amounting to ₹24,010 crore. Additionally, they identified a staggering 21,791 non-existent entities. A breakdown of these entities reveals that 11,392 fall under state tax jurisdictions, while 10,399 are within the purview of the Central Board of Indirect Taxes and Customs (CBIC) jurisdiction. Notably, state authorities uncovered tax evasion totaling ₹8,805 crore, while central authorities identified evasion amounting to ₹15,205 crore during this special drive.
In their pursuit of justice, central GST officers have made 154 arrests related to the total GST evasion of ₹1.51 lakh crore detected in the current fiscal year until October 2023. The authorities have also managed to recover ₹18,541 crore so far, underscoring their commitment to ensuring compliance and penalizing wrongdoers.
Comparing the current fiscal year’s findings to the preceding one, the Finance Ministry notes that in the financial year 2022-23, GST authorities detected evasion totaling over ₹1.31 lakh crore. However, the recovery during that period was notably higher, reaching Rs 33,226 crore. Minister of State for Finance, Pankaj Chaudhary, emphasizes the need for continued vigilance and proactive measures to curb tax evasion effectively.
The Finance Ministry’s disclosure highlights the pervasive nature of tax evasion and the challenges faced by GST authorities in maintaining fiscal discipline. The concerted efforts to crack down on tax offenders, especially in high-risk sectors like online gaming, underscore the government’s commitment to ensuring a fair and transparent tax regime. As the fiscal year progresses, continued scrutiny and enforcement are expected to play a pivotal role in curbing such illicit practices and promoting financial integrity.
Aakash Mishra is a fantasy writer and prediction aficionado. Being a cricket enthusiast himself, he loves to relate and propagate about how fantasy sports platforms can be advantageous in our day to day life. Along with foretelling match results, he enjoys writing about game forecasts for all fantasy sports.