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GST evasion detection hits all-time high of ₹2.23 trillion in FY25
GST evasion detection hits all-time high of ₹2.23 trillion in FY25

Business Standard

time19 hours ago

  • Business
  • Business Standard

GST evasion detection hits all-time high of ₹2.23 trillion in FY25

FM Nirmala Sitharaman urges faster probe closures and easier registrations Monika Yadav The Central Board of Indirect Taxes and Customs (CBIC) detected Goods and Services Tax (GST) evasion of ₹2.23 trillion in the financial year 2024-25 (FY25), an all time high figure which was 10 per cent more than the previous year's ₹2.02 trillion. In FY23, the GST evasion stood at ₹1.01 trillion. In FY25, voluntary payments by taxpayers stood at ₹28,909 crore, according to data shared at the CBIC Conclave held in New Delhi on Thursday. Chairing the meeting, Finance Minister Nirmala Sitharaman called for speedy closure of investigations in Customs and CGST cases, stronger action on tax evasion, and time-bound improvements in GST registration and grievance redressal. Audit coverage under GST rose from 62.21 per cent in FY23 to 88.74 per cent in FY25, with officials highlighting that no taxpayer had been audited more than once in a three-year span. Refund performance also improved, with 85 per cent of claims processed within the statutory 60-day limit. The national average for GSTR-3B return filing reached 94.3 per cent during the FY25. 'An impressive 95 per cent to 97 per cent of CPGRAMS appeals are being disposed of within 30 days. This performance has placed CBIC among the top 5 out of 90 central ministries in CPGRAMS rankings since February 2024,' the release stated. Sitharaman urged the department to intensify awareness campaigns among taxpayers and trade bodies, particularly on the documentation required for GST registration-- citing frequent rejections due to issues with proof of principal place of business. She called for dedicated helpdesks within CGST zones to assist with registration applications. In Customs, cargo facilitation through the Risk Management System rose to 86 per cent in 2025, up from 82 per cent in 2022. The finance minister asked zones to further reduce dwell time for imports and exports at ports and Inland Container Depots (ICDs) to improve India's trade logistics competitiveness. As per the government, CBIC handed over 2,140.35 kg of seized gold to the Security Printing and Minting Corporation of India (SPMCIL) in FY25.

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