New Delhi, Aug 3: While the number of cases of GST tax evasion and the amount involved in the rose in 2020-21 as compared to the previous year, recovery fell sharply, the Rajya Sabha was told Today.

As per the Ministry of Finance, as many as 10,657 cases of GST tax evasion involving Rs 40,853.27 crore were detected in 2019-20. In the following year, the number of cases increased to Rs 12,596 and the amount involved in these cases totaled Rs 49,383.96 crore.

While the recovery in FY20 was Rs 18,464.07 crore, it stood at Rs 12,235 crore in FY21.

“It is true that the interface for the taxpayers is on digital platform and software-based to be used for payment of tax and to comply with the requirements of law and procedure by taxpayers,” said Pankaj Choudhary, Minister of State for Finance said in a written reply.

“However, tax evaders are known to commit fraud even on electronic platforms by way of misrepresentation of facts like furnishing of fake credentials at the time of registration; by indulging in raising a fake invoice to avail under Input Tax Credits; misdeclaration of classification, etc,” he added.

In the first three months of the current fiscal (FY22), 1580 cases of GST evasion have been found and evasion to the extent of Rs 7,421.27 crore has been reported. Recovery of Rs 1,920.20 crore has been reported so far.

“The evasion may be committed intentionally and at times non-payment of tax may happen due to human error, the Minister said, while adding that no evasion of tax has been reported due to failure in the CBIC (Central Board of Indirect Taxes and Customs) back-end system. (UNI)