Gujarat has registered a whopping 515% increase in GST evasion over the past 4.5 years. Reasons could be poor compliance or increased detection of fake billing scams.
According to data tabled in Parliament by the Union Finance ministry, Gujarat reported an evasion of Rs. 12,066.8 crore in FY 2023-24 from April to October.
This is 19.36% higher than the Rs.10,109.7 crore evasion in the entire fiscal year of 2022-23. Tax evasion during FY 2019-20 stood at Rs. 1,959.74 crore. Over the past 4.5 years, the state saw GST evasion of Rs. 38,245.7 crore.
Against this, only 24% – some Rs. 9,557.22 crore – of the evaded taxes were recovered during the period. Industry sources attribute the rise in evasions unearthed over the years, to better detection by the department and ample amendments to the law.
“Significant changes have been brought to the GST Act after proactive feedback from the tax department as well as taxpayers. A majority of the tax evaders have taken advantage of the loopholes in the policy. The modus operandi of obtaining fake bills to evade taxes and illegally claim input tax credit is changing from time to time, causing more evasion. However, with the right policy-level changes couples with better surveillance systems, the overall detection has increased,” said a well-placed source.
Read more at : The Times of India
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