Government leverages technology to uncover 14,597 GST evasion cases; Maharashtra tops the list

GST evasion cases: The government informed the Lok Sabha on Monday, February 5, that Goods and Services Tax (GST) officials have identified and registered a total of 14,597 cases of tax evasion during the period from April to December 2023. Minister of State for Finance, Pankaj Chaudhary, shared this information in response to a written query in the Lok Sabha.

Technological tools in action

GST officers are utilising sophisticated data analytic and artificial intelligence tools, including NETRA, BIFA (Business Intelligence and Fraud Analytics), and ADVAIT. These tools are instrumental in identifying risky taxpayers suspected of engaging in fraudulent practices related to input tax credits.

Maharashtra leads the tally with 2,716 registered cases of GST evasion. Gujarat closely follows with 2,589 cases, while Haryana and West Bengal recorded 1,123 and 1,098 cases, respectively.

GST intelligence officers also successfully detected fake input tax credit (ITC) cases amounting to Rs 18,000 crore during the April-December period of the current fiscal year. Notably, 98 fraudsters and masterminds were arrested in connection with these cases.

GST registration process

The GST registration process incorporates robust checks, including physical verification of premises and Aadhaar authentication. These measures have resulted in the early detection of fraudulent registrations and a significant reduction in such instances.

In Gujarat, Andhra Pradesh, and Puducherry, the government is conducting pilot programs on risk-based biometric-based Aadhaar authentication for registration applications. These initiatives aim to enhance the security and authenticity of the GST registration process.

(With PTI inputs.)