Karnataka's GST Evasion Surge: Unprecedented Rise in Fiscal 2024-25
Karnataka witnessed a dramatic increase in GST evasion cases in the 2024-25 fiscal year, with Central GST officers detecting Rs 39,577 crore, a significant rise from the previous year. Finance Minister Nirmala Sitharaman confirmed that no notices were issued based on UPI transactions. The issue has particularly affected small traders and vendors.
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Central GST officers in Karnataka have uncovered a striking surge in tax evasion, amounting to Rs 39,577 crore, during the 2024-25 fiscal year, according to data presented in Parliament. This represents a more than fivefold increase from the previous year, raising concerns about the efficacy of regulatory mechanisms.
Finance Minister Nirmala Sitharaman, in a written response to the Lok Sabha, clarified that the GST authorities have not issued notices based on UPI transactions, dispelling rumors about unsanctioned assessments of small traders and street vendors.
The alarming jump in tax evasion cases has resulted in the arrest of nine individuals and voluntary payments totaling Rs 1,623 crore. Small traders in Bengaluru have reported receiving disproportionate GST notices, largely influenced by digital payment records.
(With inputs from agencies.)
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