In FY24, GST officials have discovered evasions totaling 1.36 lakh crore, of which 14.108 crore has already been collected. An evasion of 1.01 trillion was discovered in FY23, resulting in a recovery of 21,000 crore.
GST Departments have sent a flurry of notifications to businesses in recent months requiring them to comply with tax demands
According to Business Standard, the Indian government expects to recoup 50,000 crore in evaded Goods and Services Tax (GST) in FY24. This sum is more than double what was collected in FY23 and is expected to be the largest yearly tax collection, according to the report.
In FY24, GST officials have discovered evasions totaling 1.36 lakh crore, of which 14.108 crore has already been collected. An evasion of 1.01 trillion was discovered in FY23, resulting in a recovery of 21,000 crore.
A significant percentage of this recovery is projected to come from improper input tax credit claims by insurance businesses, GST payments on expatriate services under the reverse charge method, illicit tobacco product approvals, and property transactions, according to the research.
Over the last several months, the GST Departments have sent a flurry of letters to businesses requiring them to comply with tax obligations. These include taxes on MNC expatriate staff pay, taxes on online gambling, crypto tax, and a broader scope for Online Information Database Access and Retrieval (OIDAR) service providers.
Delta Corp. is among those that have gotten such letters. On September 25, it got notice of a tax deficiency of 11,140 crore, while its subsidiaries received notifications totaling 5,682 crore. The claimed gap in tax payment covered the period from July 2017 to March 2022.
According to the demand, notices were issued by the Directorate General of GST Intelligence, Hyderabad; the dues are as follows: Delta Corp: approximately 11,140 crore; subsidiary Highstreet Cruises and Entertainment: approximately 3,290 crore; and subsidiary Delta Pleasure Cruise Company: approximately 1,766 crore.
On October 23, the Bombay High Court gave some respite by ordering authorities to postpone any final steps until its hearing in the case was completed.
Earlier this month, on October 18, about 1,000 subsidiaries of multinational corporations (MNCs) operating in India received tax requests relating to an 18% tax on wages and allowances given to foreign expats by the parent company.
The demands, ranging from 1 crore to 150 crore, are for payments made by foreign parent corporations to expats working in MNC Indian subsidiaries between FY18 and FY22. Companies have a 30-day window in which to reply to these tax claims.
On October 16, letters were given to around 70 digital organizations, including advertising firms, edtech firms, and online gaming firms, in accordance with 18 percent Integrated GST (IGST) standards. The new tax goes into effect on October 1, regardless of whether the services are for personal or commercial use.
