Digital transactions, crypto, etc prone to significant GST revenue leakage, says DGGI
Even as the Directorate General of GST Intelligence (DGGI) has detected GST evasion of over Rs.2 lakh crore in FY24—the highest in a single fiscal), There is still substantial revenue leakage in the system, which remains unplugged.
According to Anil Kumar Gupta, Principal Director General at DGGI, several transactions from the “digital economy, digital sector, cyber, cryptocurrency, Banking, Financial, and Insurance (BFSI)” remain unchecked.
In a freewheeling exit interview on September 30, while demitting his office, Gupta told CNBC-TV18 that these areas are prone to significant GST revenue leakage, and the anti-evasion agency faces many challenges in tracking them to ensure minimal leakage. He emphasised that “upcoming policy decisions and the new DG of the DGGI should look at these sectors to plug GST leakage.”
“Transactions from these sectors are difficult to track as a lot of the data is stored in the cloud; it becomes difficult for us to track, and there is a need for more attention to this side of the transactions as a lot of evasion remains uncovered.”
He noted that “apart from this, traditional areas such as gutkha, pan masala, timber and plywood, metals, alloys, and scrap too are difficult to track.” Gupta explained, "Since these goods are consumed directly by the consumer, no proper records are maintained by the sellers, and whatever records we get are of a day or two, which becomes a challenge and needs attention.”
