Executive Summary:
This document presents the Minister of State in the Ministry of Finance's response to questions regarding GST collection and evasion. It details the annual GST collection targets and actual collections for the last five financial years (2020-2025), the number of GST evasion cases detected, taxes recovered, and measures taken to improve compliance. The document also addresses the government's evaluation of e-invoicing and GSTN analytics.
Key Points / Main Content:
GST Collection Performance:
* The document provides a table comparing Budget Revised Estimates with actual Net Central GST collection (including CGST, IGST, residual GST, and Compensation Cess) for FY 2020-21 to 2024-25.
* Actual Net Central GST collection compared to Budget Revised Estimates ranged from 79.5% to 110.8% between FY 2020-21 and 2024-25.
GST Evasion Cases:
* The document presents data on the total number of GST evasion cases detected by Central Government formations, and voluntary deposits made, for FY 2020-21 to 2024-25.
* It also presents data on the total number of ITC Fraud cases, and voluntary deposits made, for FY 2020-21 to 2024-25.
* The total value of GST evasion cases detected was Rs. 7,07,942 Cr, with Rs. 1,29,175 Cr voluntarily deposited, between FY 2020-2021 and 2024-2025.
Measures to Improve Compliance and Prevent Tax Evasion:
* The government employs digitization through e-invoicing and GST analytics.
* GSTN analytics include automated risk assessment, outlier detection, actionable intelligence, and identification of anomalies in taxpayer behavior.
* These measures aid in selecting returns for scrutiny and taxpayers for audit based on risk parameters.
* Projects like "Project Anveshan" use techniques like Facial Recognition Systems (FRS) and E-way bill data to identify potentially fraudulent GSTINs.
Impact Analysis:
Taxpayers:
* Impact: Increased scrutiny and potential audits based on data analytics and risk parameters; requirement to comply with e-invoicing regulations.
* Action Required: Ensure accurate and timely filing of GST returns, compliance with e-invoicing requirements, and adherence to GST regulations to avoid detection of anomalies and potential audits.
Government (Ministry of Finance/CBIC):
* Impact: Enhanced ability to detect and prevent tax evasion, potentially leading to increased revenue collection.
* Action Required: Continue to refine and implement GSTN analytics and risk assessment tools, monitor the effectiveness of e-invoicing, and undertake projects like "Project Anveshan" to identify and address fraudulent activities.
GSTN:
* Impact: Central role in implementing and maintaining the technological infrastructure for e-invoicing and GST analytics.
* Action Required: Develop and maintain effective analytics tools, ensure data accuracy, and provide support to taxpayers and the government in utilizing the GSTN platform.
Key Entities Referenced
Goods and Services Tax (GST): A value-added tax levied on most goods and services sold for domestic consumption. This policy document discusses GST collection, evasion, and related measures.
Ministry of Finance: The ministry responsible for the financial matters of the Government of India. This document originates from the Department of Revenue within the Ministry of Finance.
Lok Sabha: The lower house of the Parliament of India, where the question regarding GST collection and evasion was raised.
Pankaj Chaudhary: The Minister of State in the Ministry of Finance who provided the answer to the Lok Sabha question regarding GST collection and evasion.
Central Goods and Services Tax (CGST): One of the components of GST, it is the portion of the tax revenue collected by the Central Government.
Integrated Goods and Services Tax (IGST): Tax levied on inter-state supply of goods and services and is another component of GST.
GST Network (GSTN): The IT infrastructure and portal for GST in India, used for registration, returns filing, and other compliance-related activities.
Project Anveshan: A project undertaken to identify GSTINs with propensity for fake fraudulent activity to generate Intelligence reports.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 2417
TO BE ANSWERED ON MONDAY, AUGUST 04, 2025/ SRAVANA 13,
1947(SAKA)
GST COLLECTION AND EVASION
2417. SHRI VE VAITHILINGAM:
Will the Minister of FINANCE be pleased to state:
(a) the annual GST collection targets during the last five years and
the manner in which the actual collections has compared with
these targets;
(b) the total number of GST evasion cases detected during the last
five years along with the corresponding value of taxes recovered;
(c) the manner in which the Government evaluates the
effectiveness of measures such as e-invoicing and GSTN analytics
in identifying systemic gaps, improving compliance and preventing
recurring tax evasion; and
(d) the impact of these measures on revenue collection and
addressing gaps in the system?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) The actual revenue collection w.r.to Net Central GST compared
to the Budget / Revised Estimates during the last five financial years
are as follows:
Net Central GST Collection
(CGST + IGST (residual) + GST Compensation Cess)
Amount in Rs. Crores
Budget Revised
Financial Actual % of BE % of RE
Estimates Estimates
Year Collection Achieved Achieved
(BE) (RE)
2020-21 6,90,500 5,15,100 5,48,777 79.5% 106.5%
2021-22 6,30,000 6,75,000 6,98,114 110.8% 103.4%2022-23 7,80,000 8,54,000 8,49,132 108.9% 99.4%
2023-24 9,56,600 9,56,600 9,57,208 100.1% 100.1%
2024-25
10,61,899 10,61,899 10,26,490 96.7% 96.7%
[P]
Source: Receipt Budget of respective years; FY 2024-25 actual collection have
been taken from PrCCA (CBIC); [P]= Provisional;
(b) The total number of GST evasion cases detected by Central
Government formations, during last five years along with the
corresponding value of taxes recovered are as follows:
Total GST Evasion Cases
No. of Detection Voluntary Deposit
Period
Cases (In Rs. Cr.) (In Rs. Cr.)
2020-21 12,596 49,384 12,235
2021-22 12,574 73,238 25,157
2022-23 15,562 1,31,613 33,226
2023-24 20,582 2,30,332 31,758
2024-25 30,056 2,23,375 26,799
Total
91,370 7,07,942 1,29,175
Total Number of ITC Fraud Cases
No. of Detection Voluntary Deposit (In Rs.
Period
Cases (In Rs. Cr.) Cr.)
2020-21 7,268 31,233 2,232
2021-22 5,966 28,022 2,027
2022-23 7,231 24,140 2,484
2023-24 9,190 36,374 3,413
2024-25 15,283 58,772 2,675
Total 44,938 1,78,541 12,831
Source: GST Investigation Wing;
Note: Total GST evasion data includes ITC fraud cases.
(c) & (d) There are various steps / measures taken by Central
Government & GSTN to help in improving compliance and
preventing tax evasion such as digitization through E-invoicing, GST
analytics such as automated risk assessment based on compliance
attributes of taxpayer, highlighting of outliers based on system-
flagged mismatches, providing actionable intelligence with an aim
to manage GST revenue risks through various tools, generating
inputs regarding GST non-compliances or evasion on the basis of
identifying anomalies in taxpayer behaviour (such as potential taxevasion, fraudulent registration, and suspicious e-way bill activity
etc.) and selection of returns for scrutiny and selection of taxpayers
for audit based on various risk parameters. These measures are
helpful in safeguarding the revenue and nabbing the evaders.
Certain projects were also undertaken such as "Project Anveshan"
(Analytics, Verification, Shortlisting of Anomalies) whereby newer
techniques like Facial Recognition System (FRS), E-way bill data
etc. were used for early identification of GSTINs with propensity for
fake/ fraudulent activity to generate Intelligence reports.
While the above measures contribute to revenue collection, impact
of such measures in identifying systemic gaps, improving
compliance and preventing recurring tax evasion is not
ascertainable.
The outcomes such as revenue growth and reduction in instances of
tax evasion cannot be attributed solely to all or any individual such
measure, as various other factors such as global economic
conditions, economic growth in the country, level of domestic
consumption of goods & services, tax rate etc. are also relevant for
this.
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