GST Evasion Detection Hits ₹2.23 Trillion in FY25

In a significant revelation at the CBIC Conclave 2025 held in New Delhi, the Central Board of Indirect Taxes and Customs (CBIC) disclosed that Goods and Services Tax (GST) evasion reached a record high of ₹2.23 trillion in FY25, marking a 10% increase from the previous year. Finance Minister Nirmala Sitharaman stressed the urgency of faster investigation closures, easier GST registrations, and stronger anti-evasion strategies.

Why in News?

GST evasion detection in FY25 is the highest ever recorded. FM Sitharaman’s directives indicate an overhaul in compliance, registration, and enforcement measures. The CBIC Conclave brought attention to key metrics in tax audit, refunds, grievance redressal, and cargo handling efficiency.

Background

  • Goods and Services Tax (GST) is India’s unified indirect tax system implemented in July 2017.
  • CBIC is responsible for administering indirect taxes including GST, customs, and central excise.

Key Data Highlights (FY25)

  • GST Evasion Detected: ₹2.23 trillion (↑ 10% from FY24: ₹2.02 trillion)
  • Voluntary Payments by Taxpayers: ₹28,909 crore
  • Audit Coverage: Rose to 88.74% (from 62.21% in FY23)
  • GSTR-3B Return Filing Compliance: National average at 94.3%
  • Refund Performance: 85% processed within 60 days
  • Grievance Redressal: Reduced to 9 days (from 21-day timeline)
  • CPGRAMS Appeal Disposal: 95–97% within 30 days (Top 5 among 90 ministries)

FM Sitharaman’s Key Directives

  • Speedy closure of investigations in Customs and CGST cases.
  • Simplify GST registration using technology and risk-based frameworks.
  • Set up helpdesks in CGST zones to reduce documentation-related rejections.
  • Intensify awareness campaigns for traders and taxpayers.
  • Urged filling of vacant CBIC posts and resolution of pending disciplinary cases.

Customs & Trade Facilitation Updates

  • Risk Management System (RMS) usage for cargo rose to 86% in 2025 (up from 82% in 2022).
  • Dwell time reduction emphasized for ports and Inland Container Depots (ICDs).
  • Seized Gold: 2,140.35 kg handed over to the Security Printing and Minting Corporation of India (SPMCIL).
Summary/Static Details
Why in the news? GST Evasion Detection Hits ₹2.23 Trillion in FY25
GST Evasion Detected (FY25) ₹2.23 trillion
Increase from FY24 10% (FY24: ₹2.02 trillion)
Voluntary Payments ₹28,909 crore
Audit Coverage 88.74%
Refund Clearance (within 60 days) 85%
GSTR-3B Filing Rate 94.3%
Grievance Redressal Average Time 9 days (↓ from 21 days)

Shivam

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