Between July 2017 and December 2024, 1,386 cases of GST evasion were recorded in Punjab, involving approximately ₹6,454 crore. Authorities arrested 72 individuals linked to these cases. To address GST evasion, the government has implemented multiple measures. These include restricting input tax credit (ITC) to invoices listed in the supplier’s GSTR-1 and visible in GSTR-2B, mandating sequential filing of GSTR-1 before GSTR-3B, and enforcing electronic invoicing for B2B transactions for businesses with over ₹5 crore turnover. Additionally, Aadhaar-based biometric authentication for GST registration is now risk-based and extended nationwide. Applicants not opting for Aadhaar authentication must visit GST Suvidha Kendras for photo and document verification. High-risk applications may undergo physical verification even after Aadhaar authentication. Other steps include centralized suspension of non-compliant registrations and penalties for masterminds of GST fraud schemes. Bank account details must also be furnished within 30 days of registration or before filing outward supply details. These efforts aim to ensure robust compliance and reduce GST evasion.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UNSTARRED QUESTION NO. 233
ANSWERED ON – 04/02/2025
“GST EVASION IN PUNJAB”
233. Shri Vikramjit Singh Sahney:
Will the Minister of FINANCE be pleased to state:
(a) the number of cases of GST evasion registered in Punjab since its inception;
(b) the amount involved in this evasion;
(c) the number of people arrested who were involved in cases of GST evasion; and
(d) the details of steps taken by Government to check GST evasion?
ANSWER
MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (c): In the State of Punjab, during July 2017 to December 2024, the number of GST evasion cases booked by Central Tax formations is 1,386 with GST evasion amount of approximately Rs. 6,454 Cr and involving the arrest of 72 persons.
(d) Following steps have been taken by the Government to check GST evasion:
(i) Input tax credit can only be availed by a registered person in respect of such invoices or debit notes which have been furnished by the supplier in the statement of outward supplies in FORM GSTR-I and details of which have been communicated to the registered person in FORM GSTR-2B;
(ii) A registered person is not allowed to furnish the details of outward supplies under section 37 in FORM GSTR-I, if he has not furnished the return in FORM GSTR-3B for the preceding tax period;
(iii) Filing of FORM GSTR-I is made mandatory before filing of FORM GSTR-3B for a tax period and filing of FORM GSTR-I has been made mandatorily sequential;
(iv) Electronic invoicing (e-invoice) has been made mandatory for all B2B transactions for businesses with turnover exceeding Rs. 5 crore;
(v) Rule 8 of CGST Rules, 2017 has been amended to provide for OTP based verification of PAN at time of registration on the mobile and email address linked with PAN. This will help in preventing GST registration using PAN of other persons, without their knowledge;
(vi) Sub-rule (4A) has been inserted in Rule 8 of CGST Rules, 2017 to provide for risk based biometric-based Aadhaar authentication of registration applicants;
(vii) Biometric-based Aadhar authentication of GST registration applications has been extended on pan-India basis. Besides, it has been provided through amendment in rule 8(4A) of CGST Rules that an applicant who has not opted for Aadhaar authentication, will also be required to visit GST Suvidha Kendra for taking of photograph and for document verification;
(viii) Amendment has been made in Rule 9 of GGST Rules, 2017 to provide for physical verification in high risk cases, even when Aadhaar has been authenticated;
(ix) Amendment in Rule 10 A of CGST Rules, 2017 has been made to provide that the details of bank account will be required to be furnished within 30 days of grant of registration or before filing of statement of outwards supply under section 37 of CGST Act, 2017 in FORM GSTR-I/ Invoice Furnishing Facility, whichever is earlier;
(x) Centralized suspension of registrations pertaining to registered persons who default in timely filing of returns;
(xi) Beneficiary (master mind), who retains benefit or at whose instance a supply has been made without the issuance of an invoice, or invoice has been issued without supply, or excess ITC has been availed/distributed, has been made liable for penalty similar to that of actual supplier/recipient.
