https://www.taxscan.in/gst-evasion-in-construction-works-contracts-crosses-%e2%82%b910000-crore-in-fy24/403583/

The Directorate General of GST Intelligence (DGGI) reported that GST evasion in construction and works contracts surpassed ₹10,000 crore in FY24, with over ₹8,900 crore still outstanding. Major evasion reasons included fake Input Tax Credit (ITC), erroneous exemptions or ITC claims, undervaluation, and tax non-payment. DGGI uncovered 1,813 evasion cases, amounting to about ₹10,600 crore. \r

During investigations, taxpayers voluntarily paid around ₹1,640 crore. Construction services and works contracts accounted for over ₹10,000 crore in GST evasion last fiscal, primarily due to fake ITC claims and incorrect exemptions. \r

Notably, ITC is ineligible for works contract services used in immovable property construction under prevailing laws and rules.