GST Evasion Doubles to Rs 2.01 Lakh Crore in FY24; Mumbai Leads in Detection

GST evasion in India has surged to Rs 2.01 lakh crore in FY24, with Mumbai emerging as the leading city for evasion detection. The increase is attributed to enhanced monitoring and enforcement by the GST authorities, including actions taken against shell companies and fraudulent input tax credit claims. Mumbai's leadership in detection signifies the concentration of high-value businesses in the region. Despite these enforcement measures, many businesses still exploit loopholes to avoid GST. The government’s continuous efforts in plugging these gaps are evident, but the rise in evasion poses significant challenges to the tax regime.