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Clamping down: Indirect tax evasion of Rs 48,500 crore detected in April-December

FE Bureau
Indirect tax evasion, Goods and Services Tax, GST return-filing system, GSTR-3B, GSTR-1

The government detected indirect tax evasion of over Rs 48,500 crore in April-December this fiscal, up 50% from such detection in the whole of FY 2017-18. This clearly indicates a focused drive to boost revenue, especially in the wake of the big shortfall in the Goods and Services Tax (GST) receipts. In the last fiscal, the amount detected of indirect tax evasion had gone up by over 36% compared with 2016-17, the finance ministry said in reply to a question in Parliament.
The amount recovered by the department in April-December this fiscal was Rs 13,910 crore. This was 200% more than the recovery in the whole of 2017-18, but was still 29% of the detected evasion. The recovery as a percentage of detected evasion was 25.8% in FY17 and 14.2% in FY 18.

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Under GST, the government said that it found an estimated evasion of Rs 15,278 crore in April-December period of the current fiscal. However, it also managed to recover a higher proportion of evaded taxes at Rs 9,959.3 crore. Officials said that higher recovery under GST was possible due to real-time analysis of data as the entire GST return-filing system is online.

The GST system also provides the tax officials to match summary return GSTR-3B and GSTR-1 (outward sales details) to detect differences between tax liability declared and input tax credit claimed by taxpayers. Reports on stop filers and discrepancy detected between different returns under GST have led to detection of evasion amounting Rs 677.7 crore and recovery of Rs 43.1 crore till November 18, the government said.