Global Statistics

All countries
704,753,890
Confirmed
Updated on May 20, 2024 1:53 am
All countries
560,567,666
Recovered
Updated on May 20, 2024 1:53 am
All countries
7,010,681
Deaths
Updated on May 20, 2024 1:53 am

Global Statistics

All countries
704,753,890
Confirmed
Updated on May 20, 2024 1:53 am
All countries
560,567,666
Recovered
Updated on May 20, 2024 1:53 am
All countries
7,010,681
Deaths
Updated on May 20, 2024 1:53 am
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The seven-year glitch: Inside the govt’s war to plug the GST leakage

As India’s Goods and Services Tax (GST) enters its seventh year since its launch in June 2017, the government is intensifying efforts to address loopholes in the tax system. Despite stabilizing the economy, GST now requires internal reforms to tackle its own inefficiencies, which have led to increasing tax evasion.

In recent years, while the GST system was stabilizing, tax evasion has surged. The number of detected evasion cases rose to 14,000 in 2022-23, up from 12,574 in 2021-22 and 12,596 in 2020-21. Evasion detection doubled to over Rs 1.01 lakh crore in 2022-23. The Directorate General of GST Intelligence (DGGI) officers managed to recover Rs 21,000 crore during this fiscal year. In 2021-22, DGGI detected evasion exceeding Rs 54,000 crore, leading to a tax recovery of over Rs 21,000 crore.

Despite these challenges, there have been positive indicators. When GST was introduced in 2017, national revenue from indirect taxes stood at Rs 7.19 lakh crore. Since the implementation of GST, revenue has significantly increased to Rs 18.1 lakh crore. Additionally, the number of taxpayers has surged from 67 lakh in 2017 to 1.4 crore in 2023. Notably, in April of the current year, GST collections reached an all-time high at Rs 1.87 lakh crore, marking a new monthly norm of Rs 1.5 lakh crore.

The growth in GST collections can be attributed to multiple factors. Post-pandemic recovery and India’s economic resilience played a role, but equally significant were the government’s anti-evasion measures and initiatives to enhance compliance. These steps are crucial as India strives to sustain and improve its tax system amid evolving economic landscapes.

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