In the current financial year, GST evasion amounted to Rs. 50,000 crore expected to be recovered

Mumbai: The government expects to recover Rs 50,000 crore from Goods and Services Tax (GST) evasion in the current financial year. Not only is this figure more than double compared to the previous financial year, it will also be the biggest recovery ever in a single year, sources in the GST department said.

In the current financial year, GST authorities have caught tax evasion of Rs 1.36 trillion. Sources also said that Rs 14108 crore has been recovered from this. In the last financial year i.e. 2022-23, total tax evasion of Rs 1.01 trillion was caught out of which Rs 21000 crore was recovered.

There is a possibility of recovery of significant GST unpaid on erroneous claims of input tax credit by insurance companies, clandestine clearance of tobacco products and immovable property transactions.

The authorities have come to the notice of taxpayers for under-invoicing of goods and services, wrongly obtaining exemption certificate, wrong input tax credit etc. to pay less tax.

More and more recovery is taking place as the government implements enforcement mechanisms to catch tax evasion and amendments to the law to prevent GST evasion.

Apart from this, the sources further said that due to the special investigation campaign conducted by the GST department of the center and the state, tax evasion has been successfully caught.

According to an official of the GST department, a total tax evasion of Rs 3.08 trillion has been caught from July 2017 to February 2023, of which Rs 1.03 trillion has been recovered. Between April 2020 and September 2023, more than 6000 fake cases of input tax credit were caught.