The Goods and Services Tax (GST) regime was implemented with the
primary aim of simplifying the taxation system. However, despite
concerted efforts by authorities to achieve this goal, the GST
framework remains inherently complex. This complexity not only
poses challenges for taxpayers but also creates loopholes that can
be exploited by fraudulent entities, leading to significant revenue
losses for the government.
During a special drive spanning from May 2023 to December 2023,
the government identified a concerning number of 29,273 fraudulent
entities suspected of evading Input Tax Credit (ITC) to the tune of
INR 440.15 billion. Similarly, between the fiscal years 2020-21 and
May 2023, authorities unearthed a staggering 43,516 instances of
GST fraud, involving a substantial INR 2685.37 billion. These
figures may be the tip of the iceberg and indicate a possibility of
numerous undetected cases. Moreover, fraudsters have exploited the
system's complexity, impersonating
