The investigation arm of the Finance Ministry has detected tax evasion worth Rs 29,088 crore in 1,835 cases in the first seventh months (April-October) of the current financial year (FY19). Of this, the Directorate General of GST Intelligence (DGGI), which is enforcement agency for checking indirect tax evasion, has detected evasion of goods and services tax (GST) worth Rs 4,562 crore in 571 cases. The bulk of the evasion was detected in case of service tax. The total number of cases where service tax was evaded stood at 1,145 involving Rs 22,973 crore. In case of central excise duty, it detected 119 cases where tax evaded was worth Rs 1,553 crore.
Further, the total amount of detection may be more as the data does not include detection by field offices of the Central Board of Indirect Taxes and Customs (CBIC). On recovery of evaded taxes, a total amount of Rs 5,427 crore was realised during seven months of FY19. These include recovery from previous cases and those detected during the current financial year. Of the total recovery, Rs 3,124 crore was from GST evaders, followed by Rs 2,174 crore in case of service tax, and Rs 128 crore from those who had evaded central excise.
Earlier, the Finance Ministry had extended the informant reward scheme of central excise and service tax to GST. The scheme was modified to include officers of other government agencies like police, BSF, CISF and coast guard. According to reward scheme, informers and government servants were eligible for reward up to 20% of the net sale-proceeds of the contraband goods seized and/or amount of duty/ service tax evaded plus amount of penalty levied and recovered.
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