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GST evasion of ₹7.08 lakh crore detected in five years, includes input tax credit fraud of ₹1.79 lakh crore

GST evasion of ₹7.08 lakh crore detected in five years, includes input tax credit fraud of ₹1.79 lakh crore

Posted on August 4, 2025 By admin


Wooden letters GST and money coin stack on red table background, financial concept
| Photo Credit: Getty Images/iStockphoto

“Central Goods & Services Tax (GST) field officers have detected tax evasion of about $7.08 lakh crore in the last five years till 2024-25 fiscal, including input tax credit (ITC) fraud of about ₹1.79 lakh crore,” Parliament was informed on Monday (August 4, 2025).

In 2024-25 fiscal alone, more than ₹2.23 lakh crore of GST evasion were detected by CGST field officers, according to the data shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha.

Of the 30,056 cases of GST evasion detected in FY’25, more than half or 15,283 cases pertained to ITC fraud, where the evasion was to the tune of ₹58,772 crore. In the 2023-24 fiscal, ₹2.30 lakh crore worth GST evasion was detected by CGST field officers, involving ITC fraud of ₹36,374 crore.

In FY’23, about ₹1.32 lakh crore GST evasion was detected, including ₹24,140 crore of fake ITC claims. In FY’22 and FY’21, GST evasion stood at ₹73,238 crore and ₹49,384 crore respectively. This included ITC fraud of ₹28,022 crore and ₹31,233 crore respectively.

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In the last five years (2020-21 to 2024-25), total GST evasion detected by CGST field officers stood at about ₹7.08 lakh crore in 91,370 cases. Taxes recovered during the period by way of voluntary deposit stood at more than ₹1.29 lakh crore.

The evasion data includes ITC fraud of about ₹1.79 lakh crore in 44,938 cases between FY’21 to FY’25. Mr. Chaudhary said the Central Government and GSTN are taking various steps to prevent tax evasion, such as digitisation through E-invoicing, GST analytics, highlighting of outliers based on system-flagged mismatches, providing actionable intelligence and selection of returns for scrutiny and selection of taxpayers for audit based on various risk parameters.

GST officers detect ₹15,851 crore fraudulent ‘input tax credit’ claims in April-June; 3,558 fake firms uncovered

“These measures are helpful in safeguarding the revenue and nabbing the evaders,” Mr. Chaudhary said in a written reply in the Lower House.

To a question on the actual net Central GST collection compared to the Revised Estimates (RE), Mr. Chaudhary said net CGST collection was 96.7% of the RE in 2024-25 fiscal. Net CGST includes CGST+Integrated GST+compensation cess.

Actual collection stood at more than ₹10.26 lakh crore in FY’25, as against RE of nearly ₹10.62 lakh crore. In FY’24, net CGST collection was more than ₹9.57 lakh crore or 100.1a% of the RE of more than ₹9.56 lakh crore.

Published – August 04, 2025 03:30 pm IST



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Business Tags:GST evasion detected, GST Fraud, input tax credit fraud, Minister of State for Finance Pankaj Chaudhary on GST, Pankaj Chaudhary on GST

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