GST India’s government is poised to recover ₹50,000 crore in evaded Goods and Services Tax (GST) during the fiscal year 2024, marking a substantial increase from the ₹21,000 crore reclaimed in the previous fiscal year.
GST officials have identified evasions totalling ₹1.36 lakh crore in the current fiscal year, already recuperating ₹14,108 crores. This surge in recovery is attributed to intensive efforts by the GST Departments, which have issued numerous notices to companies compelling compliance with tax demands.
Several sectors are under scrutiny, including insurance companies making incorrect claims of input tax credit, expatriate services taxed under the reverse charge mechanism, illicit clearances of tobacco products, and property transactions. Gaming company Delta Corp, among others, faced substantial tax demands, prompting the Bombay High Court to halt actions pending further hearings temporarily.
Furthermore, multinational corporations operating in India have received notices for an 18% tax on salaries and allowances paid to foreign expatriates by parent companies, with around 1,000 subsidiaries served with demands ranging from ₹1 crore to ₹150 crore. Additionally, digital companies, including advertising firms, edtech, and online gaming firms, are now subject to 18% Integrated GST (IGST) from October 1, broadening the tax base.
The crackdown on tax evasion has been intensified through rigorous compliance measures and amendments to the GST system, particularly focusing on emerging sectors. Efforts have led to the detection of over 6,000 fraudulent cases involving input tax credits between April 2020 and September 2023, with a total value exceeding ₹57,000 crore.
In the ongoing fiscal year, 14,000 cases of evasion have been detected, reflecting a determined effort to combat tax evasion and bolster tax recovery.
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