GST frauds are increasing significantly. The GST Council is considering to take measures to reduce fraudulent tax evasion.
As per the statement made by Anurag Thakur in Rajya Sabha, since the rollout of Goods and service tax (GST) on July 1, 2017, the amount involved of GST frauds was estimated to be Rs 45,682 crore
A total of 1,593 cases were detected in the first three months only of the current financial year.
An amount to the tune of Rs 6,520.40 crore has been unveiled in the April-June period of fiscal year 2020 alone.
Also Read: GST fraud of Rs 60 crore detected: Punjab
Besides the huge fraud cases, the GST collections also slipped to Rs 98,202 crore in August which is below Rs 1 lakh crore. Against this, the gross revenue collections GST in the month of July was recorded at Rs 1.02 lakh crore.
Raising concerns over the issue, West Bengal’s Finance Minister Amit Mitra had written to Finance Minister Nirmala Sitharaman asking to set up a task force having state and Central officers to detect all cases of tax evasion and take action against racketeers for recovery of evaded tax.
Also added that hasty and unplanned rollout of the GST framework has not only led to tax frauds but also lower tax collection.