The Finance Ministry’s investigation department has detected tax evasion worth Rs 29,088 crores in 1,835 cases during April-October 2018. Out of this, the Directorate General of GST Intelligence (DGGI) that is an enforcement agency that checks on indirect tax evasion detected evasion of goods & services tax worth Rs 4,562 crore in 571 cases.
The bulk evasion case of service tax was detected that stood to 1,145 cases involving Rs 22,973 crores. In the case of central excise duty, the DGGI had detected 119 cases that were worth Rs 1,553 crores.
The DGGI Officers have said that the total amount of detection was likely to be more as the data does not include detection by field officers of the Central Board of Indirect Taxes and Customs(CBIC).
On recovery of evaded taxes, a total amount of Rs 5,427 crores was realized during the seven-month period till October in this financial year. This includes recovery from previous cases and those detected this year.
Of this total recovery, Rs 3,124 crores were from GST evaders, followed by Rs 2,174 crores in case of service tax, and Rs128 crores from that who had evaded central excise.
CBIC had decided to tighten on evaders, so a larger chunk of recovery was possible. The Apex Indirect tax body had set up the Office of Commissioner GST Investigation to focus on checking evasion that is headed by Neeraj Prasad.
The Finance Ministry had extended the informant reward scheme of central excise and service tax to GST. The scheme was modified to include officers of other government agencies like Police, BSF, CISF and Coast Guard. As per the reward scheme, informers and government servants were eligible for reward up to 20 percent of the net sale proceeds of the contraband goods seized and/or amount of duty/service tax evaded plus the amount of penalty levied and recovered. In cases of detection of drawback frauds or abuse of duty exemption schemes under various Export Promotion Schemes, the informers are eligible for a reward up to 20 percent of the recovery of drawback claimed fraudulently and/or recovery of duties evaded.
GST that is subsumed 17 local taxes like excise and service tax, was rolled out on July 1, 2017. The Ministry has renamed DGGI to Directorate General of Central Excise Intelligence(DGGGI) and has mandated to check service tax and central excise duty evasion.
Reference Links
- Over Rs 29k cr indirect tax evasion during April-Oct
- Rs 29,088 cr indirect tax evasion detected during April-Oct
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