GST Evasion FY24 FM Flags ₹34,000 Cr, CBIC Gets Directive
Over ₹34,000 crore in GST evasion detected in FY24 — but recoveries lag behind. The Finance Ministry’s recent conclave brought sharp focus on plugging this enforcement gap, issuing strict directions to CBIC. Here’s what every taxpayer and consultant must know.
What Happened at the Conclave?
- Two-day field conclave in New Delhi
- Attended by senior CBIC officers & field officials
- Finance Minister Nirmala Sitharaman issued a five-point directive
Key Directives to CBIC
Focus: Bridge the gap between detection and recovery.
Five core orders:
1️⃣ Fast-track adjudication for pending cases.
2️⃣ Use tech for data mining & AI-based red flagging.
3️⃣ Fix accountability for delayed recoveries.
4️⃣ Boost field-level integrity — strict vigilance on officers.
5️⃣ Quarterly review of recovery efficiency.
Reference: Sources covering the conclave; cross-check with CBIC Official Site.
Why Does GST Evasion Happen?
- Fake invoicing
- Non-reporting of supply
- Circular trading
- Shell companies
Tip: Always reconcile your GSTR-1, 2B & 3B. Small mismatches can trigger scrutiny.
How Big is the Problem?
| Item | FY24 (Approx.) |
|---|---|
| Total Evasion Detected | ₹34,000+ crore |
| Recovery Achieved | Less than 40% |
| Pending Dues | Over ₹20,000 crore |
Expert View: Practical Compliance Tip
Timely Response: If you receive a notice, respond within deadline. Delays can attract heavy penalties under Section 122 & 125 of CGST Act.
Regular Audit: Use Efiletax’s GST audit tools to spot errors early.
How to Stay Compliant?
- File returns on or before due date
- Verify supplier compliance (use IMS & GSTR-2B)
- Report true turnover
- Keep documentation ready for 6 years (Section 36 CGST Act)
FAQ
Q1: Who investigates GST evasion?
CBIC’s DGGI (Directorate General of GST Intelligence) is the main investigating arm.
Q2: What penalty for evasion?
Up to 100% of tax evaded + possible jail term under Section 132.
Stay Ahead with Efiletax
GST rules evolve — non-compliance costs you money & peace of mind. Consult Efiletax for audits, reconciliations & notice handling.
Summary
Over ₹34,000 crore in GST evasion was detected in FY24 but recovery stayed low. FM directed CBIC to bridge the gap through faster adjudication, tech use, and stricter integrity checks. Taxpayers must reconcile returns and respond quickly to notices.