News

Govt improving GST evasion detection but recovery a problem: CAG report

Govt improving GST evasion detection but recovery a problem: CAG report

A report tabled by India’s Comptroller and Auditor General (CAG) before Parliament on Wednesday admonished the government for being slow in implementing technology and simplified filing process for Goods and Services Tax (GST) as it said detecting evasion has improved.

Report No 1 of 2021 on “Indirect Taxes - Goods and Services Tax, Central Excise and Service Tax” said the amount of cases detected via anti-evasion activities had improved 72% between FY18 and FY19 from Rs 38,686 crore to Rs 66,507 crore; and 49% between Financial Year (FY) 2016-2017 and FY2017-2018.

“The Ministry attributed the significant increase in the number and amount of cases detected through anti-evasion activities to increase in the tax base owing to GST implementation; issuance of fake invoices for passing on a substantial amount of Input Tax credit by unscrupulous taxpayers; and setting up of Directorate General of Analytics and Risk Management (DGARM), which is entrusted with the functions of analysing big data, the outcomes of which were intermittently shared with the DGGI,” said the report.

Top