GST evasion: 450 arrests since 2020-21

Finance Ministry says drive against fake invoicing intensifying again after second wave slowdown

The government continues to tighten the noose around GST evaders, though its crackdown on fake invoices slowed down in recent months due to the COVID-19 pandemic’s resurgence, the Finance Ministry said on Tuesday. Citing the misuse of Input Tax Credit (ITC) provisions as the most common modus of tax evasion under the GST regime, the Directorate General of GST Intelligence (DGGI) and central GST (CGST) formations also detected other tax fraud means such as evasion involving ‘misclassification, undervaluation and clandestine supplies of goods and services’. About 8,000 cases involving fake ITC of over ₹35,000 crore were detected over 2020-21, leading to the arrest of 426 persons, which included 14 professionals such as chartered accountants and lawyers. ‘Masterminds, beneficiaries and directors’ were also arrested under an ongoing nationwide special drive against fake GST invoices since November 2020.