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CBIC cracks down on GST evaders

  • Jun 22, 2020 | Divita S Gupta

CBIC cracks down on GST evaders

After detecting a GST evasion of over ₹200 crores by a tobacco company, the Central Board for Indirect Taxes and Customs has directed its authorities to tighten the noose around tax evaders. The CBIC has reportedly zeroed in on around 350 companies suspected of large tax evasions. This list includes exporters, private hospitals, pharmaceutical companies, as well as medical equipment companies. All zonal offices of CBIC have been directed to investigate cases of suspected tax fraud and evasion and come down heavily on tax evaders who are misusing relaxations granted during the Coronavirus pandemic to their advantage. Tax evasion is a major pain point for the CBIC. As per the Fifteenth Finance Commission’s presentation in January 2020, India may be losing close to ₹5 lakh crore annually in indirect tax revenue due to defaults, fraud and evasion. 


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Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.