GST evasion: 55,813 cases worth `1.6L cr detected during last 3 yrs 7 months

New Delhi: A total of 55,813 cases of Goods and Services Tax (GST) evasion amounting to Rs 1,60,950 crore were detected over the past three years and seven months, Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha on Tuesday.

Most cases involved fake invoicing and Input Tax Credit (ITC) fraud carried out through bogus or dummy entities.

In the current financial year up to October, authorities uncovered 24,109 cases of tax evasion worth Rs 41,664 crore. During 2024-25 alone, 15,283 ITC fraud cases involving Rs 58,772 crore were detected.

Chaudhary said the government has implemented several measures to curb fake invoicing, including mandatory e-invoicing for all B2B transactions for businesses with turnover above Rs 5 crore and enhanced physical verification in high-risk cases.

Two nationwide special drives—conducted between May and August 2023 and again from August to October 2024—targeted fake registrations and fraudulent ITC claims. These operations involved physical checks of business premises, leading to the suspension or cancellation of non-existent GSTINs.

Responding to another question, the minister said the GST reforms recommended by the 56th GST Council in September 2025 aim to strengthen the tax system with a more citizen-centric approach.

Following the rationalisation of GST rates, the Central Board of Indirect Taxes and Customs (CBIC) has been monitoring prices of key goods, including packaged foods and medicines, to ensure that businesses pass on the benefits of lower tax rates to consumers. Inputs received so far indicate that these benefits have indeed been transferred to

end-users.