GST evasion in Karnataka jumps 5-fold in FY25

New Delhi: Finance Minister Nirmala Sitharaman on Monday informed Lok Sabha that Central GST officers in Karnataka detected tax evasion of Rs 39,577 crore in 2024-25 fiscal year, an over 5-fold jump from the year-ago period.

In a written reply the Minister also said that “Central GST authorities have not issued any notices based on UPI transactions”.

The Minister was replying to BJP Lok Sabha members K Sudhakar and Tejasvi Surya’s question whether the government has issued GST notices to small traders and street vendors in the country, including Karnataka, without assessment of their business activities.

Last month, numerous small traders and shopkeepers in Bengaluru, Karnataka, received disproportionately high GST notices primarily based on digital footprints, such as UPI transactions. The notices were sent by State GST field offices.

To another question on the details of GST evasion detected in Karnataka, Sitharaman shared the details of cases by the Central Tax formations pertaining to the state.

In 2024-25, 1,254 cases involving Rs 39,577 crore of Goods and Services Tax (GST) evasion were detected by CGST officers. Nine persons were arrested and Rs 1,623 crore voluntary payments were made.

The amount detected by CGST officers in FY25 was over 5-times that of FY24.

In 2023-24, 925 cases were detected involving Rs 7,202 crore evasion. Two persons were arrested and Rs 1,197 crore was recovered by way of voluntary payment of tax.

In 2022-23, 959 cases involving Rs 25,839 crore tax evasion were detected by CGST officers. Two persons were arrested and Rs 1,705 crore voluntary tax payment was made.

The Minister also said that all eligible registered persons having annual turnover up to Rs. 5 crores in the preceding financial year may opt for filing of quarterly returns with monthly payment of tax. Besides, the filing of Annual Returns for FY 2017-18 to FY 2023-24 have been made optional for small taxpayers with annual turnover of up to

Rs. 2 crores.