DGGI Nears Completion of Pre-GST Tax Evasion Probes, to Disband Dedicated Unit Soon

The Directorate General of GST Intelligence (DGGI) is nearing the completion of its investigations into pre-GST tax evasion cases, primarily involving service tax and central excise. The DGGI plans to disband the dedicated unit handling these cases by March 2024, having investigated nearly 300 cases over the past year. These cases, mainly from the power, automobile, and infrastructure sectors, have uncovered tax evasion worth over ₹5,000 crore, with recoveries of a few hundred crores. Less than 60 cases remain under investigation, some awaiting court resolutions. Sector-based tax issues, such as those involving construction services and liquidated damages in infrastructure contracts, have been central to these probes. Experts advise businesses to review new show-cause notices related to the pre-GST era carefully, as the limitation period for issuing such notices may have expired. The DGGI’s ongoing vigilance demonstrates its commitment to addressing both historical and current tax evasion cases.