Govt detecting increasing amounts of GST evasion each year, but recoveries are falling short

The government has detected an increasing amount of Goods and Services Tax being evaded each year, but recoveries have not kept pace with detection, the Ministry of Finance informed Parliament earlier this week.

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Further, it looks like Maharashtra has an outsized contribution to the GST evasion being detected, both in absolute terms and also in relation to the state’s share in tax collections.  

The data on the amount of GST evasion the government has detected each year, the amount it has recovered, and the state-wise break-up of both was provided by the Ministry of Finance Tuesday to the Rajya Sabha in response to a question. 

ThePrint’s analysis of the data shows that the government detected Rs. 40,853.27 crore of GST evasion in the financial year 2019-20, and was able to recover about 45 percent of this amount (Rs 18,464.07 crore).

Since then, however, while the amount of evasion detected has increased significantly, the recovery percentage has fallen quite sharply. 

Read more at: The Print

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