FM flags Rs.34,000 crore GST evasion, directs CBIC to bridge detection-recovery gap
The Finance Ministry’s two-day field conclave to discuss current performance, challenges, bottlenecks, and aligning the field formations of GST and Customs administration with the thinking at the Centre ended today in New Delhi.
According to highly placed sources, the Central Board of Indirect Taxes and Customs (CBIC)’s two-day national-level brainstorming conclave concluded with a strong message from Finance Minister Nirmala Sitharaman to plug systemic gaps and improve the effectiveness of tax enforcement.
Focusing on recovery versus detection in terms of tax leakages, sources shared that “a staggering over Rs. 34,000 crore worth of tax evasion was detected through GST audits in FY24 — but actual recoveries stood at a mere Rs. 4,000 crore, highlighting a significant gap between detection and enforcement.”
“The Finance Minister expressed serious concern over the growing gap between detection of tax leakages and actual recoveries,” a senior government official told CNBC-TV18.
Major metro cities under scanner
As per the GST audit data, the highest cases of tax evasion were recorded in Chennai, Mumbai, Bengaluru, and Hyderabad — cities that account for a large share of the country’s formal and informal economic activity.
