Central GST officers caught 5 times bigger tax evasion

New Delhi New Delhi: Central GST authorities in Karnataka detected tax evasion of Rs 39,577 crore in FY 2024-25, more than five times the amount detected in the same period last year, Parliament was informed on Monday.

In a written reply in the Lok Sabha, Finance Minister Nirmala Sitharaman said, “Central GST authorities have not issued any notices based on UPI transactions.” The minister was responding to a question on whether the government has issued GST notices to small traders and street vendors across the country, including Karnataka, without assessing their business activities. Last month, several small traders and shopkeepers in Bengaluru, Karnataka received disproportionately high GST notices based on digital footprints such as UPI transactions.

These notices were sent by state GST regional offices. Responding to another question on details of GST evasion detected in Karnataka, Sitharaman shared details of cases registered by central tax formations related to the state. In 2024-25, 1,254 cases involving Goods and Services Tax (GST) evasion of Rs 39,577 crore were detected by CGST officers.