GST Evasion: Government expecting ₹50,000 crore mop-up on recovery of dues, multiple notices sent
₹50,000 crore in evaded Goods and Services Tax (GST) in FY24, Business Standard reported. This amount is over double that of what was recovered in FY23 and is likely to potentially be the highest annual tax collection, it added. In FY24, GST officials have so far identified evasions amounting to ₹1.36 lakh crore; and have already recovered ₹14,108 crore of this.
In FY23, an evasion of ₹1.01 trillion was detected, resulting in a recovery of ₹21,000 crore. A substantial portion of this recovery is expected to come from incorrect claims of input tax credit by insurance companies, GST payments on expatriate services under the reverse charge mechanism, illicit clearances of tobacco products, and property transactions, the report added. The GST Departments have over the past few months sent a flurry of notices to companies to comply with tax demands.
These include taxes on salaries of MNC's expatriate employees, taxes on online gaming, crypto tax and the expanded scope for Online Information Database Access and Retrieval (OIDAR) service providers. Among those who received such notices include gaming company Delta Corp. On September 25, it received a notice for a tax shortfall of ₹11,140 crore, whereas, its subsidiaries were issued notices for an amount totalling ₹5,682 crore.
The alleged shortfall in the payment of tax pertained to the period between July 2017 and March 2022. As per the demand, notices were sent by the the Directorate General of GST Intelligence, Hyderabad; dues are follows - Delta Corp: close to ₹11,140 crore; subsidiary Highstreet Cruises and Entertainment: near ₹3,290 crore; and subsidiary Delta Pleasure Cruise Company: about ₹1,766 crore. On October 23, the Bombay HC provided some relief by directing
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