DGGI Annual Report 2022-23

ANNUAL REPORT
2022-23
Directorate General of Goods & Services Tax Intelligence (DGGI), New Delhi
Central Board of Indirect Taxes & Customs
Department of Revenue
Ministry of Finance
Government of India
Message
It gives me great pleasure to know that the Directorate General of
Goods and Services Tax Intelligence (DGGI) is bringing out its Annual
Report for the fiscal year 2022-2023. This report highlights the collective
dedication, resilience, and commitment of our officers towards
upholding the integrity of our tax system and ensuring fiscal compliance
in the GST ecosystem.
In the face of unprecedented challenges, such as the economic

repercussions of the global pandemic, the DGGI has demonstrated
remarkable resilience and adaptability. The focus on intelligence-
led enforcement actions, innovative strategies, and leveraging cutting-edge technology has
yielded remarkable results. Through these efforts, not only Government revenue has been
safeguarded but also led to a culture of improved compliance.
The annual report of DGGI for the fiscal year 2022-2023 will make the readers aware of the
hard work and achievements of DGGI and the Directorate’s notable milestones, successful
initiatives, and the positive impact it has made on the revenue.
As we move forward, I encourage DGGI officers to carry forward the legacy of this organization
by upholding the highest standards of professionalism and integrity.
I extend my best wishes for the future endeavours of DGGI and hope it scales greater heights.
(Sanjay Kumar Agarwal)
Annual Report 2022-23 3

Message
I am happy to learn about the publishing of Annual report 2022-23 by
Directorate of GST Intelligence. This is the first Annual Report in six
years after the Directorate was renamed as DGGI. The tradition should
continue.
The reorganisation approved by Finance Minister for implementation

of GST in March 2017 is for DGGI to become an important wing of
the Government in its fight against tax evasion and black money. The
DGGI charter of functions is replete with references to intelligence
and investigation of tax evasion or offence, and it also emphasizes
dissemination and alerting field formation on intelligence or modus operandi. These are
guiding principles for DGGI.
While in the last five nascent years, the DGGI has made a notable contribution in settling the
transition to GST regime, this phase being over, in the future, the all India DGGI’s actions
should be focussed around these guiding principles. This includes the rooting out of entities
based on bogus activity, or those making or using clandestine supplies or availing ITC through
creation of fake supply chains.
I am not only confident that all ranks of DGGI will build up on this role but also that the
Directorate would, insofar as its Units’ engagements with regular tax payers is concerned,
ensure through standard operating guidelines that needs of enforcement work are appropriately
balanced with suitable facilitation.
I complement all DGGI personnel for their dedication and encourage them to take up or devise
better, faster ways of identifying actionable intelligence and making successful investigations.
(Rajiv Talwar)
Special Secretary & Member CBIC

Message
I am pleased to learn about the publication of the Annual Report of
the Directorate General of Goods and Services Tax Intelligence (DGGI)
for the Financial Year 2022-23. This Annual Report provides a precise
and comprehensive overview of the Directorate’s accomplishments and
initiatives. I express my deepest appreciation for the outstanding work
done by the DGGI team in 2022-23.
DGGI has been entrusted with the task of enforcing the compliance of
Indirect Tax Laws namely GST, Central Excise and Service Tax. DGGI
has earned a distinguished reputation among the law enforcement
agencies as an effective and professional intelligence and investigating agency. I commend
that despite limited human resources, DGGI has been able to outperform in terms of detections
and voluntary payments in the FY 2022-23 as compared to FY 2021-22.
The Annual Report brings out the analysis and trends of emerging evasion prone commodities
and services in GST era which should act as reference to all those who are engaged in plugging
tax evasion. The analysis of modus operandi resorted to by the evaders will also enable the
officers to effectively devise counter measures to check tax evasion. Drive against the fake
ITC which was impacted during the Second & Third Wave of COVID-19, was reinforced with
meticulous data analytics, focussing mainly on apprehending masterminds in the FY 2022-23.
I appreciate the sincere efforts of the entire team of DGGI, in bringing out this Annual
Report.
(Anil Kumar Gupta)

Pr. Director General

CONTENTS
Directorate General of Goods & Services Tax Intelligence (DGGI) 11
1.1 Introduction 11
1.2 The Journey of DGGI 12
1.3 Jurisdictional Set-up 13
1.4 Charter of Functions 14
1.5 The Changing Roles of DGGI 15
1.6 Staff Position 16
2. Anti-Evasion Performance 17
2.1 Performance of DGGI : Post introduction of GST 17
2.2 Comparative performance in FY 2022-23 vis-à-vis FY 2021-22 19
2.3 Zonal Units wise detection 22
2.4 Zonal Units wise Voluntary Payments 23
2.5 Typology of GST Cases 24
2.6 Evasion Prone Goods 25
2.7 Evasion Prone Services 26
2.8 DGGI Vs CGST Zones 27
3. Analysis of Tax Evasion Trends 28

3.1 Short Payment of Tax by Undervaluing Taxable goods and services 28
3.2 Supply of taxable goods and services without Payment of Tax 29
3.3 Wrong availment / fraudulent availment/ non-reversal of Input Tax Credit 30
3.4 Non Payment of Tax under Reverse charge mechanism (RCM) 32
3.5 Tax collected but not paid to Govt. Exchequer 33
3.6 Others: (Clandestine Removal, Misclassification) 33
4. Fake Invoicing & Fake ITC 35

5. Key Performance Areas 38

5.1 Completion of Pending Investigation of GST Cases 38
5.2 Completion of Pending Investigation of Legacy Cases (Central Excise + Service Tax) 39
5.3 Arrest & Prosecution 40
5.4 Rewards 40
6. A Closer Look 41
6.1 Tobacco, Pan Masala & Cigarettes 41
6.2 Iron & Steel: 42
6.3 Inadmissible ITC availed in Insurance sector 44
6.4 OIDAR Services 46
6.5 Supply of Seconded Employees by Foreign Commercial Entities 48
6.6 Chinese Commercial Entities (CCEs) 49
6.7 Online Platforms for Trading of Virtual Digital Assets (Crypto Currency and NFT) 51
6.8 Clandestine Supply of Services 53
6.9 New Emerging Trends 56
7. New Initiatives 58
7.1 Cyber Forensic Labs 58
7.2 E Waste Disposal Campaign 60
7.3 Training and Capacity Building among officers of DGGI 61
7.4 Infrastructural Development 64
8. Presidential Awards 65
9. Memoirs : DGGI Annual Conference 2022 66
10 Annual Report 2022-23

Directorate General of Goods &
Services Tax Intelligence (DGGI)
1.1 Introduction
DGGI is an apex intelligence organization functioning under the Central Board of Indirect Taxes
& Customs (CBIC), Department of Revenue, Ministry of Finance, entrusted with the task of
collection, collation and dissemination of intelligence relating to evasion of Goods and Services
Tax (GST). It also undertakes investigation of cases involving multi-jurisdiction and high revenue
implications. As an apex intelligence agency, the DGGI co-ordinates with other intelligence and
investigation agencies, such as, Central Economic Intelligence Bureau, Directorate General of
Income Tax Investigation, Directorate General of Revenue Intelligence, Enforcement Directorate,
etc. It has its headquarters at New Delhi, with 4 Sub-National Units (each headed by Director
General), 26 Zonal Units (each headed by Principal Additional Director General / Additional
Director General) and 40 Regional Units (each headed by Deputy Director / Assistant Director)
located across the country.
Collection, collation
and dissemination of Investigations to unearth
intelligence Modus Operandi
Coordination and
Information Sharing Suggesting policy
with other Intelligence changes by analysing
Agencies trends of tax evasion

1.2 The Journey of DGGI
The DGGI was earlier known as Directorate General of Anti-Evasion (DGAE) which was
established in the year 1978 (F.No.A-11011/30/78-Ad.IV dated 04.12.1978) as an independent
wing under the Directorate of Revenue Intelligence with the Regional Units located at Chennai,
Delhi, Kolkata and Mumbai. It became a full-fledged Directorate in 1983, headed by a Director.
In 1988, the Directorate was upgraded to Directorate General under a Director General with four
Zonal Units located at Chennai, Delhi, Kolkata and Mumbai.
The Directorate General was expanded in the year 2000 with the setting up of a number of
Regional Units under the respective Zonal Units. In 2004, DGGI was entrusted with the work of
detecting cases of evasion of Service Tax also. It was renamed as Directorate General of Central
Excise Intelligence (DGCEI) in 2009 (F.No.A-11013/37/2000-Ad.IV dated 09.11.2009). With
introduction of GST, w.e.f. 01.07.2017, the DGCEI was renamed as DGGI (vide Office Order
F.No. A-11013/18/2017-Ad.IV dated 12.06.2017) and strengthened and expanded to become an
important wing of the Government in its fight against Tax Evasion and Black Money..

1.3 Jurisdictional Set-up
DGGI Hqrs. + 4 Sub National Units (SNUs) + 26 Zonal Units (ZUs) + 40 Regional Units (RUs)
DGGI (Hqrs.) New Delhi Headed by Pr. DG
SNUs
Sr. No. SNUs ZUs RU
Headed by DG Headed by Pr. ADG / Headed by ADD / JD
ADG
1 North Delhi None
Gurugram Rohtak
Jaipur Udaipur
Chandigarh Shimla, Jammu
Meerut Ghaziabad, Dehradun
Ludhiana Amritsar
Lucknow Kanpur, Agra
2 East Kolkata None
Siliguri Gangtok, Durgapur
Patna Jamshedpur
Guwahati Agartala, Aizawal, Imphal, Itanagar,
Dimapur, Shillong
Raipur Bilaspur
Bhubaneshwar Rourkela
3 West Mumbai None
Nagpur Nashik, Aurangabad
Pune Goa, Kolhapur
Ahmedabad Rajkot, Gandhidham
Surat Vapi, Vadodara
Bhopal Indore, Jabalpur
4 South Bengaluru None
Belagavi Bellary, Mangalore
Chennai Puducherry
Coimbatore Hosur, Madurai, Tiruchirappalli
Hyderabad Warangal
Kochi Thiruvananthapuram, Kozhikode
Vishakhapatnam Vijaywada (Amravati)
Total 4 26 40

Jurisdictional Map of DGGI

1.4 Charter of Functions
Collection, Investigating Studying the Coordinating Supplementing

offences having modus-operandi action with other and
collation and
ramification of evasion of GST enforcement
dissemination coordinating
in one or agencies like
of intelligence and to alert the the efforts of
more than one
relating to evasion concerned field CEIB, Income Tax, field formations
Commissionerates
of GST & Central / States, including formation about ED, State GST in investigation,
Excise on an all investigation of it and to suggest Departments etc. wherever
India basis complicated cases policy measures to necessary
CBIC
1.5 The Changing Roles of DGGI

GST with its emphasis on advanced IT infrastructure, made a paradigm shift towards technology
and data driven indirect tax administration in India. CBIC has, in recent years, invested a lot in
development of data analytical tools, predictive modelling, data visualization tools and big data
analysis so as to equip its officers with world-class IT infrastructure.
The DGGI, as an organization, is no exception to this ongoing change. It has steadily moved
towards intelligence gathering by way of various advanced tools of data analytics in addition
its intelligence network across the country. DGGI has transformed the contours of intelligence
gathering by using the enormous database of GST Network to focus on areas of tax evasion.
Many new modus operandi in the GST era have been unearthed by using these sophisticated
tools. The intelligence collected and developed by DGGI is either ploughed into action directly
by its officers, or shared with the Commissionerate depending upon the scale and reach of the
case.
The most significant outcome of the federal nature of GST is the partnership of Centre and State
in enforcement actions. The jurisdiction of State enforcement authorities extends to the entire
state whereas the jurisdiction of Centre enforcement authorities (such as DGGI) extends to the
whole territory of India. The DGGI is better suited to carry out operations in cases where there
are multiple jurisdictions involved.

1.6 Staff Position
As on 31.03.2023
Name of the Posts Sanctioned Working Vacancy Position
Strength Strength
Pr. Director General 1 1 0
Director General 4 2 2
Principal ADG 11 5 6
Addl. Director General (including Adjudication) 19 18 1
Additional / Joint Director 58 54 4
Deputy/Assistant Director 170 92 78
Deputy Director (OL) 1 0 1
Assistant Director (OL) 1 1 0
Chief Accounts Officer 9 1 8
Senior Intelligence Officer 728 473 255
Intelligence Officer 2214 659 1555
Senior Private Secretary 17 7 10
Private Secretary 22 2 20
Administrative Officer 37 8 29
Steno-I 49 8 41
Executive Assistant 50 22 28
ST 2 1 1
JT 3 1 2
Driver Spl. Gr. 5 2 3
Steno-II 54 18 36
Tax Assistant 114 67 47
Lower Division Clerk 32 6 26
Driver – Grade - I 36 5 31
Driver – Grade - II 29 4 25
Driver – Grade - III 35 2 33
Head Havaldar 108 31 77
Havaldar 141 14 127
MTS 9 7 2
Total 3959 1511 2448

2. Anti-Evasion Performance
2.1 Performance of DGGI : Post introduction of GST
After introduction of GST regime (01.07.2017), general trend of downfall in fresh detections in
legacy cases (Central Excise and Service Tax) has been noticed due to transition of enforcement
from legacy cases to GST cases. The same is tabulated as under:
Central Excise Service Tax

Voluntary
Financial Detection Voluntary Payment Detection
Payment
Year
No. of Amt. in No. of Amt. in No. of Amt. in No. of Amt. in
Cases Crore Cases Crore Cases Crore Cases Crore
2017-18 283 5,349 226 247 2042 21,378 1254 2,555
2018-19 692 2,782 177 386 1677 27,835 1046 2,822
2019-20 483 8,366 131 231 1417 13,489 686 1,166
2020-21 122 2,860 95 91 1173 8,993 474 539
2021-22 42 811 24 127 630 3,753 236 199
2022-23 17 575 6 28 180 370 89 29
Total 1639 20,743 659 1,110 7119 75,818 3785 7,310

Further, it is pertinent to mention that after introduction of GST, there is an upward trend in
detection in GST Cases.
Detection Voluntary Payment

Financial Year Amt. Amt.
No. of Cases No. of Cases
in Crore in Crore
2017-18 136 7879 90 7,438
2018-19 1539 19,319 1352 8,687
2019-20 2466 21,739 1983 13,065
2020-21 3828 31,908 2683 10,630
2021-22 3835 50,325 3102 21,183
2022-23 4872 1,01,354 3683 20,713
Total 16676 2,32,524 12893 81716

2.2 Comparative Performance in FY 2022-23 vis-à-vis FY 2021-22
A. GST Detections:
No. of Cases Amount (in Rs. Crore)

2021-22 2022-23 2021-22 2022-23
Detection in GST Cases 3,835 4,872 50,325 1,01,354
No. of Amount in
Cases Rs. Crore

B. Voluntary Payment of GST:
No. of Cases Amount (in Rs. Crore)

2021-22 2022-23 2021-22 2022-23
Voluntary Payment in GST Cases 5,546 3,683 21,183 20,713
No. of Amount in
Cases Rs. Crore

C. Central Excise & Service Tax:
Detection Voluntary Payment

No. of Cases Amount No. of Cases Amount
(in Rs. Crore) (in Rs. Crore)
2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23
C. Excise 42 17 811 575 24 6 127 27
Service Tax 630 180 3,753 370 236 89 199 29
TOTAL 672 197 4,564 945 260 95 326 56

2.3 Zonal Units wise detection
GST (Detection)
SNU Zonal Unit 2021-22 2022-23
No. of cases Amt. No. of cases Amt. (in Rs.
(in Rs. Crore) Crore)
EAST Bhubaneshwar 81 1,527 132 2,229
Guwahati 79 303 246 911
Kolkata 150 1,038 87 21,170
Patna 55 648 124 791
Raipur 192 1,121 108 1,708
Siliguri 77 1,386 110 1,876
Sub Total 634 6,023 807 28,685
NORTH Chandigarh 162 2,219 197 1,810
Delhi 58 1,670 83 2,762
Gurugram 157 3,839 516 8,125
Jaipur 92 2,679 251 5,449
Lucknow 42 1,743 95 1,351
Ludhiana 54 719 133 703
Meerut 138 5,089 126 3,532
Sub Total 703 17,958 1401 23,732
SOUTH Belgavi 73 1,825 110 460
Bengaluru 269 2,267 320 1,963
Chennai 143 635 136 1,991
Coimbatore 105 586 85 923
Hyderabad 86 2,513 160 2,947
Kochi 115 420 119 755
Vishakhapatnam 240 624 142 946
Sub Total 1031 8,870 1072 9,985
WEST Ahmedabad 510 2,876 778 4,889
Bhopal 116 2,820 119 2,902
Mumbai 151 4,027 163 4,190
Nagpur 334 2,287 146 605
Pune 69 1,578 108 2,799
Surat 255 3,010 271 2,806
Sub Total 1435 16,598 1585 18,191
HQRS. 32 876 7 20,762
Grand Total 3,835 50,325 4,872 1,01,354

2.4 Zonal Units wise Voluntary Payments
GST (Voluntary Payment)
SNU Zonal Unit 2021-22 2022-23
No. of cases Amt. No. of cases Amt. (in Rs.
(in Rs. Crore) Crore)
EAST Bhubaneshwar 52 449 84 773
Guwahati 2519 209 300 512
Kolkata 107 665 54 323
Patna 160 180 81 153
Raipur 147 610 68 785
Siliguri 64 1,340 69 315
Sub Total 3049 3,453 656 2,861
NORTH Chandigarh 95 218 108 598
Delhi 42 315 64 474
Gurugram 135 612 457 3,015
Jaipur 77 717 200 665
Lucknow 34 715 82 485
Ludhiana 59 108 92 261
Meerut 107 784 137 962
Sub Total 549 3,469 1140 6,460
SOUTH Belgavi 69 1,464 72 188
Bengaluru 206 1,598 317 1,117
Chennai 224 438 175 778
Coimbatore 196 245 237 324
Hyderabad 52 1,237 124 665
Kochi 55 114 53 205
Vishakhapatnam 172 267 108 603
Sub Total 974 5,363 1086 3,880
WEST Ahmedabad 248 1,669 207 1,084
Bhopal 67 958 51 344
Mumbai 108 2,982 141 3,104
Nagpur 334 663 146 453
Pune 47 1,334 95 1,297
Surat 150 952 155 1,144
Sub Total 954 8,558 795 7,426
HQRS. 20 340 6 85
Grand Total 5546 21,183 3683 20,713

2.5 Typology of GST Cases
2022-23
Sr. Modus Operandi No. of Cases GST Evaded

No. (in Rs. Crore)
1 Short Payment of Tax by Undervaluing Taxable goods and services 169 22,266
2 Non payment of Tax on supply of taxable goods and services 1,025 19,165
3 Wrong availment / non-reversal of Input Tax Credit 2,084 18,842
4 Non payment of Tax under Reverse charge mechanism 266 2,537
5 Wrong availment of Exemption notification 85 1,173
6 Tax collected but not paid to Govt. exchequer 70 605
7 Others 1,173 36,766
Total 4,872 1,01,354

2.6 Evasion Prone Goods
2022-23
Sr. Evasion Prone Goods No. of Cases Amount of Tax

No. Evaded (in Rs Crore)
1 Iron & Steel Products 594 4,491
2 Pan Masala/Gutkha & Chewing Tobacco 107 2866
3 Automobile Parts 22 460
4 Copper & Copper Articles 28 271
No. of Cases Amount Evaded (in Rs. Crore)

2.7 Evasion Prone Services
2022-23
Sr. No. Evasion Prone Services No. of Cases Amount of Tax

Evaded (in Rs Crore)
1 Works Contract Services 488 3,146
2 Construction Services 183 820
3 Royalty Services provided by the Govt. like 70 805
allotment of mines/spectrum etc. under
reverse charge mechanism
4 Banking and Other Financial Services 30 534
5 Man Power Recruitment/Security Services 76 419
No. of Cases Amount of Tax Evaded (in Rs. Crore)

2.8 DGGI Vs CGST Zones
GST Anti Evasion Performance During 2022-23
Formation Detections Voluntary Payment
No. of Cases Amount Amount
(in Rs. Cr.) (in Rs. Cr.)
DGGI 4,872 1,01,354 20,713
CGST Zones 10,500 31,053 12,509
TOTAL 15,372 1,32,407 33,222

3. Analysis of Tax Evasion Trends
Analysis of the intelligence and performance reports indicate that iron & steel products, pan masala
/ gutkha and chewing tobacco and auto mobile parts are the major evasion-prone commodities
under GST. Further, the major evasion prone Services include manpower recruitment / security
services, works contract services / construction services, and royalty services provided by the
Government like allotment of mines / spectrum etc.
3.1 Short Payment of Tax by Undervaluing Taxable goods and services:

In such cases, the taxpayer suppresses the tax liability by discharging the liability at lower taxable
value, in contravention to the statutory provisions of valuation, and rules made thereunder. One
such major case detected during FY 2022-23 is as under:
S r . Modus Operandi (in brief) Goods/ Amount of duty

No. Services evasion (in Rs. Crore)
1 In a case against a firm engaged in providing online providing 6845.94
gaming platform, investigations revealed that the online
taxpayer was paying GST on the commission value gaming
only, whereas it should have been paid considering platform
supply of actionable claims which attracts GST @28%
on 100% of the face value of the bet. The taxpayer
thereby suppressed the taxable value and short paid
GST.

3.2 Supply of taxable goods and services without Payment of Tax:
Some of the major cases detected by DGGI during 2022-23 are as under:
Sr. Modus Operandi (in brief) Goods/ Amount of

No. Services duty evasion
(in Rs. Crore)
1 Investigations revealed that the taxpayer had made brand transfer sale 61.28
brand transfer sale to another firm in respect of various
dermatology brands for Rs. 340.48 Crore without payment
of tax. On being pointed out, the taxpayer accepted the tax
liability and voluntarily paid the entire GST liability of
Rs. 61.28 Crore.
2 The taxpayer had received advance payment of Rs. 2243.27 Brand Licensing 342.19
Crore (inclusive of tax) from a company against supply Service
of brand licensing but tax liability on the same was not
discharged by them. On being pointed out, the taxpayer
voluntarily paid entire tax amount.
3 A firm (X) assigned leasehold rights of their land to the Service of Long 72.73
said other firm (Y) and received consideration in lieu of terms lease of
assigning leasehold rights. They (X) declared it as a non- land (In lieu
GST transaction in their GSTR-1 returns. However, the of assigning
supply of service by way of long term lease of land by any leasehold rights)
person against a consideration is taxable supply on which
GST is payable @18%. During investigation, the taxpayer
voluntarily paid the entire GST liability of Rs. 72.73 Crore.
4 A Non-Banking Financial Company rendering personal Deficiency Service 64.12
loans to salaried and self-employed individuals through a Fees
fellow fintech company. From the GST returns revealed that
other than interest and fees & commission, it had generated
revenue from ‘deficiency service fees’ on which no GST was
paid. Total non-payment of GST by the firm on deficiency
service fees works out to be Rs.64.12 Crore and the taxpayer
voluntarily paid an amount of Rs. 5 Crores.

3.3 Wrong Availment / Fraudulent Availment/ non-reversal of Input
Tax Credit:
Analysis of intelligence inputs collected by the DGGI indicate that Wrong availment / non-
reversal of Input Tax Credit is among the most used modus operandi. Some of the major cases
detected during 2022-23 are as under:
Sr. Modus Operandi (in brief) Goods/ Service Amount of duty

No. evasion (in Rs. Crore)
1 A firm which were paying excess commission over and commission to 700
above the legitimate commission to their Insurance their Insurance
Agents/ Broker/ Intermediaries as permissible under Agents/
IRDA (Payment of commission or Remuneration Broker/
or Reward to Insurance Agent and to insurance Intermediaries
Intermediaries) Regulations, 2016. They were
transferring excess commission amount to nominees’
accounts against the invoices raised by them in the
name of advertisement or event management service,
without receipt of any service. Thus, the taxpayer
evaded GST of Rs. 700 Crore approx. by avoiding
payment under the Reverse Charge Mechanism on
the excess amount of commission transferred to the
nominees.
2 Some firms were involved in passing on fraudulent Fake invoices of 563.25
ITC on fake invoices without supply of any goods or Metal scrap
services. Investigations revealed that all of these firms
were non-existent and were floated merely on paper
for the sole purpose of issuance of bogus invoices of
iron scrap.
3 Investigations revealed that an NBFC, in the course of Insurance 407
micro finance lending business, was also selling credit services
linked insurance policy cover of an insurance firm to
the borrowers, so as to secure the loans disbursed to
the borrowers, in case of death of the borrower.
As per IRDA regulations, only nominal commission
up to 5% is permitted to corporate agents who are
selling insurance products, whereas the cost incurred
for selling the policies at branches of the NBFC
involved cost such as rent, IT software, staff training
cost, salary of employee, other ancillary cost, which
were over and above the commission allowed as per
IRDA Regulations.

Sr. Modus Operandi (in brief) Goods/ Service Amount of duty
No. evasion (in Rs. Crore)
Therefore, the said firm introduced an intermediary
company in order to camouflage the transfer of the
commission amount which was over and above the
commission permitted under IRDA guidelines, under
the pretext of expenses of advertising activities like
brand activation/ web marketing etc. They made
payments to the intermediary company for further
transfer of money to NBFC, and availed ITC against
the same.
As no service was received by the insurance firm in
this transaction, the availed ITC by the taxpayer was
not admissible. On being pointed out, the taxpayer
paid Rs. 100 Crore against its liability.
4 A Life Insurance Company, engaged in supply of invoices issued 120
insurance services, had availed input tax credit for services of
amounting to Rs. 350 Crore on the basis of invoices advertising,
issued for services of advertising, marketing, brand marketing,
activation etc., whereas no such service had actually brand
been received by the taxpayer. The Company have activation etc.,
voluntarily deposited an amount of Rs. 120 Crore.
5 An insurance company engaged in providing Insurance 100
insurance cover to motor vehicles for own damage cover to motor
as well as third party damage. While settling motor vehicles for
insurance claim, they were receiving certain invoices damage
where a portion of claim was paid by the client for
the reason that the work done was outside the scope
of policy. However, the company was availing ITC
on entire invoice value including the value on which
tax was paid by the client and had thus availed
inadmissible ITC amounting to Rs. 100 Crore. The
taxpayer voluntarily paid Rs. 25.96 Crore
6 A company engaged in trading of cotton was not Trading of 343.56
properly paying their GST liability on the carrying cotton
charges & late lifting charges (recovered from their
customers) and penalties imposed by them upon
various job workers and also was not reversing ITC
correctly on account of cotton loss due to fire/rain/
theft/misappropriation etc. On being pointed out, the
taxpayer voluntarily paid Rs. 343.56 Crore.

3.4 Non Payment of Tax under Reverse Charge Mechanism (RCM):
Services provided by many Service providers are subject to payment of GST under reverse
charge mechanism (RCM). Some of the major cases detected under this category are as under:
Sr. Modus Operandi (in brief) Goods/Services Amount of duty evasion

No. (in Rs. Crore)
1 A firm engaged in manufacturing and distribution Royalty fee 389
of Mobile phones, have technology / brand license
agreements for which they are liable to pay Royalty
fees to various foreign entities. But it was not paying
GST under RCM. The firm voluntarily deposited an
amount of Rs. 45 Crore against their GST liability of
Rs. 389 Crore on this issue.
2 A firm engaged in the business of manufacturing and Import of 127.76
supplying automobiles, have entered into an agreement Manpower
with a foreign entity which has agreed to provide Supply Services
some of its well qualified and experienced employees/ (Secondment)
personnel to work for, facilitate and oversee the various
operations of the firm on secondment basis. These
services received by the firm from a foreign entity under
the secondment agreement are covered under import
of manpower supply service on which they were liable
to pay IGST under reverse charge mechanism which
was not being paid by them. On being pointed out, the
firm agreed and voluntarily paid its IGST liability of
Rs. 127.76 Crore.
3 A firm engaged in manufacture and supply of iron ore License fee 34.98
pellets and other iron & steel products, paid an amount services for the
of Rs. 194.35 Crore to Government of Karnataka right to use
against ‘licensing services for the right to use minerals minerals
including its exploration and evaluation’. It did not
discharge the GST liability under reverse charge
mechanism. On being pointed out, the taxpayer paid
its entire tax liability of Rs. 34.98 Crore.

3.5 Tax collected but not paid to Govt. Exchequer:
Sr. Modus Operandi (in brief) Goods/ Amount of duty

No. Services evasion(in Rs. Crore)
1 A Company which was engaged in work contract Work Contract 77
services, had not deposited GST to the Government Services
exchequer despite charging and collecting the GST
from its recipients to whom the supplies were made.
The GST liability of the taxpayer was approximately
Rs. 77 Crore. The non-payment of GST was admitted by
the taxpayer during investigation and on persuasion,
the taxpayer has so far paid Rs. 64.1 Crore.
2 A firm engaged in manufacturing and supplying Cement 158.62
cement, were not paying GST to the Government
exchequer whereas GST was collected from their
customers and ITC passed on to them. The said
firm accepted their liability of Rs. 158.62 Crore for
the months of January-2021 and February-2021 on
Outward Supply & Inward supply liable to Reverse
Charge Mechanism. Total voluntarily payment in the
subject case till date is 158.62 Crore.
3 A firm was engaged in supply of electronics goods Electronic 448.77 in both cases
through Amazon. The TCS was collected by an Goods (68.08 + 380.69 )
Electronic Commerce Operator against taxable
supplies made by the taxpayer but remaining amount
of GST liable to be paid by the firm, was not paid by
the firm to the Government. During investigation, the
firm paid its outstanding GST liability amounting to
Rs. 68.08 Crore.
Similar case against a different firm which was
engaged in providing e-commerce platform for sale
and purchase of various commodities, was booked.
Out of the estimated GST liability of Rs. 380.69 Crore,
the taxpayer voluntarily paid GST amounting to Rs.
21.35 Crore.

3.6 Other: (Clandestine Removal, Misclassification)
Sr. Modus Operandi (in brief) Goods/ Amount of duty
No. Services evasion (in Rs. Crore)
1 A firm engaged in manufacturing and supplies supplies of 729
of chewing tobacco, was clandestinely procuring chewing
unmanufactured raw tobacco on the strength of tobacco
invoices issued by the suppliers in name of fake / non-
existent firms located in Gujarat and Delhi. During
investigation, data regarding movement of raw
tobacco from Gujarat to Delhi NCR was collected from
various sources viz. GPS service providers, NHAI Toll
data and E Way Bill data downloaded with RFID.
The data so collected substantiated the clandestine
procurement of unmanufactured raw tobacco by the
taxpayer. The said clandestine procurement of raw-
tobacco was used for manufacturing chewing tobacco
which was further supplied clandestinely without
payment of tax.
2 A firm was engaged in supply of TMT bars, without supply of TMT 150
issuing invoices and without paying GST. Acting on bars
the intelligence, search was conducted at undisclosed
premises of the said firm and it was found that the
premises was being used for maintaining records/
documents pertaining to clandestine supply of TMT
bars and receipt of payment in cash. Scrutiny of data
revealed that the taxpayer had made clandestine
supply of Rs. 834.13 Crore involving tax of Rs. 150.14
Crore.
3 A company engaged in manufacturing and supply of Supply of fruit 433.98
fruit juice based drink and carbonated beverages with juice based
fruit juice. The taxpayer was misclassifying carbonated drink
based beverage with fruit juice under HSN 22029920
and discharging GST @12%. However, the same should
be classifiable under new entry inserted at Sr. No. 12B
of Schedule IV HSN 2202 and liable to pay GST @28%
alongwith Cess @12% w.e.f from 01.10.2021. Total GST
evasion in this case was Rs. 433.98 Crore.

4. Fake Invoicing & Fake ITC
Fake ITC
Though, Fake Invoice is not defined under GST Act, 2017. But in general, Fake Invoice refers to
Invoice raised without actual supply of goods and/or services. In some cases, Invoice issued to
X, but goods and services supplied to Y who requires Input Tax Credit for his output supplies.
In a typical fake invoicing racket, dummy entities are created mostly by misusing the identities,
such as, Aadhar, PAN etc. of gullible or willing persons who are offered small pecuniary benefits.
These dummy entities are operated by the controllers/ masterminds, and are used to raise
invoices of goods/ services without any concomitant supplies so as to pass on fraudulent ITC
to end-users/ beneficiaries, mostly through layers of non-existent firms. Extensive and intricate
layering is done across many GST formations to avoid detection by tax authorities.
Motives behind Fake ITC
Payment of GST
on outward
supplies
Inflating
turnover
by circular IGST Refund on
trading Exports
Fake ITC
Refund on
For booking fake account of
expenses and inverted duty
generating cash structure
Others (Income
Tax Benefit,
Money
Laundering, etc.)

Modus Operandi Adopted
(i) Huge amount of ITC is passed on even when no ITC balance is available, i.e. there is no
inward supply of any goods/services.
(ii) Another new modus operandi is that Existing seeding firms are passing of their excess ITC
accumulated fraudulently by clandestine supply of their goods/ services like B2C sales
where retail customers don’t insist on invoices.
(iii) Fake entities in name of gullible persons are registered, controlled and operated by the
masterminds.
(iv) Extensive and intricate layering is done across many GST formations with the intent to
avoid detection by tax authorities. Thereby, making it difficult to track the mastermind.
DGGI has made all out efforts to curb the menace of Fake Invoicing and as a part of Special
Drive to curb the menace of ITC on fake invoices, DGGI has been coordinating with the CGST
Zones and has booked cases against the offenders.
2022-23
No. of Cases Amount Detected Voluntary No. of Persons
(Rs. Cr.) Payment (Rs. Cr.) Arrested
DGGI 1940 13,175 1,597 68
CGST Zones 6,303 10,965 887 85
TOTAL 7231 24,140 2,484 153
Sample Cases
Total Unawareness of Misuse of KYCs
Proprietor of the fake firm was found to

run an “Atta-Chakki” completely unaware
of misuse of his IDs. Further, A number of
firms were created by one person and sold to
some other mastermind for issuance of fake
invoices. Total Detection in the subject Case
was Rs. 370 Crore.

Greed
One firm was getting monthly commission in

lieu of giving their IDs to the mastermind. The
mastermind created fake firms in the name of
his wife, son, and employees. Total Detection
in the instant case was Rs.1,435 crore.
Connivance of Bank Employee
One of the bank employees used to provide

KYC documents to the mastermind for the
creation of fake firms. Total Detection in the
instant case was Rs.90 crore.
Misuse of Data Sharing Platform
The Masterminds procured huge data from

one Data Sharing Platform which contained
large number of PANs of individuals. Based
on these PANs and other digitally forged
documents e.g. Rent Agreements, Electricity
Bills etc. bogus firms were registered. Total
Detection in the subject case was Rs.3,000
Crore.

5. Key Performance Areas
5.1 Completion of Pending Investigation of GST Cases:
2022-23
Total No. of Cases closed Cases closed by issuance Cases closed on basis of Voluntary deposit
of Show Cause Notice without issuance of Show Cause Notice
No. Amt. involved No. Amt. involved No. Amt. involved
(in Rs. Cr.) (in Rs. Cr.) (in Rs. Cr.)
7,584 1,08,856 4,304 83,782 3,280 25,074
Cases closed by issuance of Show Cause Notice (SCN)
Cases closed without issuance of SCN on basis of Voluntary deposit

5.2 Completion of Pending Investigation of Legacy Cases (Central Excise +
Service Tax):
2022-23
Total No. of Cases closed Cases closed by issuance of Cases closed on basis of Voluntary
Show Cause Notice deposit without issuance of Show
Cause Notice
No. Amt. involved No. Amt. involved No. Amt. involved
(in Rs. Cr.) (in Rs. Cr.) (in Rs. Cr.)
272 1,382 183 1,267 89 115
Cases closed by issuance of Show Cause Notice
Cases closed without issuance of SCN on basis of Voluntary deposit

5.3 Arrest & Prosecution
Besides issuance of SCN for demand of duty,

interest and penalty and making recoveries
by way of Voluntary Payments, Arrest of key
operators, masterminds and beneficiaries is
also made by DGGI in some cases depending
upon the scale and gravity of the case and
prosecution is launched in certain cases so
as to send a message to the fraudulent /
unscrupulous persons to refrain from doing
such illegal activities. In this direction, 92
persons were arrested during FY 2022-23.
Prosecution was sanctioned in 154 cases.
5.4 Rewards
Reward to informers is given based on the specificity and accuracy of the information, the
risk and trouble undertaken, the extent and nature of the help rendered by the informer. The
Informers are also eligible for reward who give information relating to assets, immovable
properties of persons from whom arrears of duty, tax, fine, penalty are recoverable and the
information results in the recovery of arrears.
The officers are also eligible for reward depending upon their contribution and recoveries made
in the cases booked by them. The reward to informers as well as officers is granted in terms
of the guidelines for Rewards issued by CBIC vide Circular No. 20/2015 dated 31.07.2015,
as amended by Circular No. 29/2016 dated 23.06.2016 and further amended by Circular No.
36/2018-Customs dated 05.10.2018.
During FY 2022-23, Reward of Rs. 25.44 Crores was disbursed to the Informers and Rs. 34.53
Crores has been disbursed to the Departmental Officers, thus, the total reward disbursed was
Rs. 59.97 Crore.

6. A Closer Look
6.1 Tobacco, Pan Masala & Cigarettes :
India faces a formidable challenge to the country’s health care system due to the health hazards
on account of Pan Masala, Cigarette and Tobacco products. Among the economic measures
outlined in the World Health Organization Framework Convention on Tobacco Control (WHO
FCTC), tobacco taxation is considered as the most cost-effective intervention to reduce tobacco
consumption. Therefore, through a higher rate of tax on these products @Sin Tax, the intent is
to discourage the consumption of these products and reduce the overall health burden on the
population.
a) Tobacco products attract GST @ 28% and a compensation cess @ 60% to 290% on ad-
valorem basis along with specific rate on certain products like Cigarettes up to Rs. 4,170/-
per thousand. In addition, tobacco products also attract Central Excise Duty and National
Calamity and Contingency Duty
b) Due to high rate of taxation and B2C sales through unorganised Retailers, Manufacturers
indulge in clandestine production and clearance..
The manufacturers of Pan Masala, Tobacco Products
and Cigarettes mostly indulge in un-accounted
purchase of raw material & packing material and
resort to clandestine removal of finished goods
without payment of tax. In the manufacturing of
final product of pan masala and tobacco products,
the main raw material is betelnut, raw tobacco,
katachu, perfume, menthol, packing materials, etc.,
out of which most of the raw materials used in the
manufacture of final product are natural products
and easily available in market without proper
accounting on account of informal trade. Major part
of the total cost of manufacturing is made up of
the cost of raw materials, which is the largest cost
component.
Modus Operendi Adopted:
(i) Only some percentage of actual purchase, production and sale is entered in the statutory
records of manufacturers, on which they pay taxes. Majority of their production & supplies
are unaccounted.
(ii) A well-planned system of unaccounted purchases to production to transportation and sale
is run through C&F Agents & dealers. Kuccha records are maintained for unaccounted

supplies at the manufacturer’s end for a very short span of time and hence it is difficult to
book cases against such manufacturers.
(iii) In some cases, to camouflage the clandestine supplies, they issue bogus invoices and e-way
bills showing faraway destination, wherein the travel time is multiple days to deliver the
goods. Thereafter, on such tax invoices and e-way bills, multiple trips are made for delivery
of finished goods in the nearby areas.
(iv) Recently, DGGI has booked several cases against prominent brands on the basis of records
recovered from the premises of transporters, packaging material suppliers and also from
their C&F Agent’s premises.
Total No of Cases Detected : 97
Amount Detected : Rs. 2491 Crores
Voluntary Payment : Rs. 296 Crores
6.2 Iron & Steel

The iron and steel sector in India has historically been considered evasion-prone when it comes
to taxation. This is due to various factors, including the complex nature of the industry, the
prevalence of cash transactions, and the potential for manipulation in the supply chain.
Steel may be manufactured from iron ore or scrap using two different processes: the blast
furnace/basic oxygen furnace route, and the electric arc furnace route. In simple terms, the

process of primary steel making is through the Blast Furnace -Basic Oxygen Furnace route (BF-
BOF). In this process, iron is produced from iron ore and secondary steel manufacturing makes
use of the Electric Arc furnace (EAF) to produce steel from the recycled scrap. The process of
manufacturing starts with melting of the scrap in the induction furnace and then transferring
the molten metal to continuous casting machine which moulds the metal in the form of ingots.
These ingots are reheated and rerolled to different shapes to form various intermediate products
viz., billets, bloom, slab and final products viz, bars, rods, plates, sheets, wires, structural shapes
and rails.
Modus Operandi Adopted:

(i) Trading of Scrap: Scrap is a primary raw material in the steel industry. The scrap market
across India is largely unorganized involving an assortment of small informal groups of
scrap dealers trading in metal scrap & supplying metal scrap to steel manufacturers. In
this first leg of transaction, scrap dealers/brokers procure scrap from open market and sell
to other scrap dealers/Steel manufacturers. To escape payment of tax @18% on supply of
scrap, fictitious firms are floated in the name of dummy persons. GST invoices and other
related documents are fabricated for passing of fraudulent Input Tax Credit (ITC) which is
utilized for payment of tax. Such paper transactions without supply of goods are used for
passing of fraudulent ITC which leads to loss of tax revenue.
(ii) Clandestine Clearance: Some of the iron and steel products viz. TMT bars & rods, MS Bars,
MS wires, MS plates and MS angles used in construction sector are prone to GST evasion.
The raw material – ferrous scrap is obtained from scrap dealers in cash and without invoices.
The final products manufactured from such scrap is also supplied in cash without invoices
to their dealers/ end customers. Details of weighment, transportation, actual production,
stock, sales, electricity consumption and such other details are required to establish the
offence.

(iii) Mis-Classification of “Slag generated during manufacture of Iron products: Coal (HSN
2701) attracts GST @ 5% & C. Cess @ Rs. 400/- per MT. A substantial quantity of Slag/
by-product is generated during manufacture of DRI (Sponge Iron) which is commonly
known as Dolochar which contains Carbon & Fe (Iron) and is classifiable under HSN 2706
as “Slag generated in the manufacture of Iron & Steel” which attracts GST@18%. But such
slag (Dolchar) is wrongly classified under HSN 2701 as “Coal” and lower rate of GST @5%
is paid which results into huge loss to the Govt. exchequer.
(iv) Availment/refund of Compensation Cess: Coal is used as raw material in the manufacturing
process of Iron & Steel but the finished product i.e. iron and steel do not attract Compensation
Cess. Some taxpayers wrongly availed the cess in contravention of proviso to Section 11 of
GST (Compensation to States Act), 2017 wherein utilization of ITC of Compensation Cess is
restricted to payment of cess on supply of goods/services leviable under the said section.
(v) Non-payment of GST under RCM on payments made to Government for mining of Iron
Ore: The State Government levies upfront fee in a periodical manner for right to use of
natural resources viz., iron ore allocation to the Steel plants. This transaction is leviable to
tax under reverse charge mechanism (RCM).
(vi) Agreeing to tolerate an act or a situation: CAMPA: The fee/charges are deposited by steel
plants with CAMPA (Compensatory Afforestation Planning and Management Authority) of
Central Government in lieu of the approval of non- forest use of an otherwise protected area
or a reserve forest. These charges are akin to compensation collected by the Government for
the taxable supply “agreeing to the obligation to tolerate an act or a situation.
6.3 Inadmissible ITC in Insurance Sector

6.3.1 Directorate General of GST Intelligence have initiated investigations against various
Life insurance and General insurance companies on the issue of availment of ineligible input
tax credit on the basis of invoices issued by Several intermediaries for providing services of
advertising, marketing, brand activation etc., whereas no such services had actually been
provided

The investigation conducted so far has
revealed that the General Insurance
Companies are passing excess commission
over and above the regulatory limits
prescribed by the Insurance Regulatory
and Development Authority (IRDA), to
their partners/sellers of insurance policies
(NBFCs or Banks or Agents) by routing the
said excess amount through Intermediaries
which raise invoice on the Insurance
Companies for various services, without
providing any such services. Further, the
intermediaries subcontract the services to
the NBFCs / Banks which issue invoices
to the intermediaries. By following this
arrangement excess commission is routed
to NBFCs / Banks. Based on the DGGI
investigation, evasion of Rs. 18,000 Crore
has also been detected by CBDT
6.3.2 Evasion of GST by General Insurance Companies (GICs) for providing Motor Vehicle
Insurance : DGGI detected evasion of substantial GST
(i) Non payment of GST on the consideration received by GICs towards the sale of “scrap/
salvage” at the time of settlement of motor vehicle insurance claims.
(ii) Wrong availment of ITC on the invoices raised by repairer / workshop in respect of motor
claims settled in reimbursement mode (non cash-less) wherein they were neither recipient
of service nor making any payment to the workshop.
(iii) ‘Compulsory deductible’/ ‘policy excess’- borne by the insured, which is neither the
expense of the insurance company nor their liability, hence, they are ineligible for availing
the corresponding ITC.

Based on the DGGI investigation, evasion of Rs. 18,000 Crore has also been detected by
CBDT.
6.4 OIDAR Services:

The GST has recognised the need for a separate category for Online Information and Database
Access or Retrieval (OIDAR) services such as advertising on the internet; providing cloud
services; provision of e-books, movie, music, software; online supplies of digital content (movies,
television shows, music and the like); digital data storage and online gaming. Bengaluru West
Commissionerate of Central Taxes is the only jurisdictional office in India for all the OIDAR
Services Suppliers. The revenue of OIDAR services for the period 2018-19 to 2022-23 is tabulated
hereunder
(Amount in Rs. Crore)
F.Y. 2018-19 2019-20 2020-21 2021-22 2022-23

Total Revenue 720.30 1,321.47 1,871.07 2,259.83 2,098.54
Growth 83.46 % 41.59 % 20.78 % -7.14 %
An OIDAR service provided by an Indian Service Provider, from within the taxable territory,
to recipients in India would be taxable. However, these services could be supplied remotely
without the supplier having a physical location or presence in India. The overseas suppliers of
such services would have an unfair tax advantage, if supply of his services manages to escape
the burden of GST.

Most of such entities have been brought into the GST fold, making them comply with the GST
law. It is found during investigation of many suppliers of online services operating from non-
taxable territories that they are either unaware or non-compliant with the provisions of GST law
in the country.
In order to improve tax compliance in OIDAR service sector, DGGI has carried out the exercise
of (i) Identification of non-registered suppliers of OIDAR services Over Internet (ii) Find emails
of relevant persons or the verticals of the suppliers (iii) Write consultative letters to the suppliers
over email to nudge them to come forward and comply with the GST law provisions in India
and (iv) Convince and persuade such suppliers to pay their historic tax liabilities. As per the
experience so far, the OIDAR service providers can be broadly covered under two categories. (i)
Ignorant but ready to comply (ii) Non co-operative / Non-responsive or Unreachable.
(i) In case of ignorant but ready to comply category of OIDAR service providers, more
than 50 cases have been booked till date against such suppliers. Total Detection made is
approximately Rs. 135 Crores and total Recoveries made is approximately Rs. 180 Crores
including interest and penalty.
(ii) In case of Non co-operative category of OIDAR service providers, DGGI has initiated
enquiries against certain overseas entities for non-payment of IGST on the supplies of
online gaming including betting/gambling made through their websites to non-taxable
online recipients in India under the umbrella of OIDAR services in terms of section 14 of
the IGST Act, 2017. These entities operate from the tax havens like Malta, Curacao Islands,
British Virgin Islands, Cypress etc. Such service providers were either non-responsive or
responded by questioning the jurisdiction of Indian Laws over them and were inclined for
protracted litigation.

The revenue loss to the government exchequer on account of such non-compliance is estimated
to be huge. Additionally, by not paying taxes in India, these operators are taking an unfair
advantage over the domestic businesses. The activities of such non-compliant overseas OIDAR
service providers are impacting not only economic security but overall security of the State.
The revenue earned by them in India, which when converted into and move through crypto
currencies, could become vulnerable to be used for organized crime, money laundering and
terror financing, thus impacting the security of India. In view of such non-cooperation by these
entities, DGGI had proposed for blocking of 24 websites offering online gaming/betting/
gambling as per prescribed procedures.
6.5 Supply of Seconded Employees by Foreign Commercial Entities:

Foreign Commercial Entities / Multi-National Companies having offices in India have been
doing business in variety of sectors such as mobile phone manufacturing, telecommunication
equipment installation and services, automobile manufacturing, software services etc.
A secondment is a general practice in most of the MNCs, wherein the parent company (overseas
Group company) deputes its manpower resources to its subsidiary’s companies (Indian
company) for particular projects, assignments or otherwise. The employee remains on the
payrolls of the overseas Group Company and receives its salary overseas. The Indian Company
reimburses the whole or part of the salary, perks and other emoluments of the employee to the
Group Company. On completion of secondment, the employee reverts to the overseas Group
Company. The said services of supply of manpower (seconded employees) from the overseas
suppliers to Indian entities fall under the ambit of Supply. Thus, the aforementioned supply is
leviable to IGST under reverse charge mechanism. DGGI initiated various investigations against
many MNCs for payment of GST under reverse charge mechanism.
Further, Hon’ble Supreme Court of India

vide its judgment dated 19th May, 2022 in the
Northern Operating Case- 2022 (61) G.S.T.L.
129 (S.C.) upheld the taxability of service tax
on seconded employees
In compliance to the investigations initiated by DGGI, many MNCs voluntarily deposited their
IGST liability under RCM on import of manpower services.

6.6 Chinese Commercial Entities (CCEs)
There are several Chinese commercial entities operating in India across various sectors such as
Smartphone Manufacturing, Automobile Sector, Pharmaceuticals, Consumer Electronics, etc.
Further, it has been noticed that many of such entities are involved in GST evasion. Accordingly,
DGGI has initiated enquiry against many such entities on various issues.
The brief of some of the major issues are as below:
(i) Issue of Royalty & Trademark Fees: One of the CCE is engaged in the manufacturing of
mobile phones, it has been observed that they have entered into an agreement in respect of
royalty and trademark with its Chinese counterparts and other associated enterprises, for
using technology/ brand name/ license etc. in India. The said entity in India has booked
royalty and trademark fee expense in their books of accounts. However, the company has
not discharged its IGST liability on import of services in respect of royalty/trademark fees
paid to its Chinese counterparts under reverse charge basis. Similar modus-operandi was
adopted by another Indian CCE also. Investigation in this regard has been initiated by the
DGGI. During the course of investigation two Chinese Commercial Entities (CCE) have
deposited the total IGST liability of Rs. 430.94 Cr along with interest of Rs. 57.42 Cr.
(ii) Issue of non-reversal of ITC: It has been observed that various CCE have not made
the payment to their foreign suppliers within 180 days of issue of the invoice thereby
contravening the provisions of CGST Act and Rules. An investigation in this regard has
been initiated by the DGGI.

DGGI has booked cases against Chinese
Commercial Entities (CCE) for not made
payment to their foreign suppliers within
180 days of issue of the invoice thereby
contravening the provisions of GST. During
the course of investigation CCE reversed/
paid the ITC of Rs. 263.12 Cr.
(iii) Issue of warranty services provided by Exclusive Distributors of CCE to the customers:
It has been noticed that the distributors of CCE of India were providing after sale support
services (i.e. warranty services) to the customers without issuing any invoices. The said
services are taxable and subject to payment of GST & if provided free of cost then ITC shall
be inadmissible proportionately. An investigation in this regard has been initiated by the
DGGI.
DGGI has booked cases against the distributors of two Mobile Phone CCEs and
voluntarily deposited tax of Rs. 45.25 Cr. has been made during investigation.
(iv) Non-reversal of ITC on account of non-realization of FIRC against Export of services:

One of the CCE registered in India, engaged in the supply of telecommunication network
marketing, equipment and servicing etc. was providing export of services under LUT
without payment of tax. In case of export of services, the payment in convertible foreign
exchange shall be received within one year from the date of issue of the invoice. However,
it was observed that total FIRC has not been received within prescribed time limit that
involves GST. An investigation in this regard has been initiated by the DGGI.
(v) Issue of Fake ITC availment: It has been observed that the taxpayer was involved in the
availment of fake ITC on the invoices received without actually receipt the goods. An
investigation in this regard has been initiated by the DGGI.

6.7 Online Platforms for Trading of Virtual Digital Assets (Crypto Currency
and NFT) :
(i) A cryptocurrency exchange is a business that allows customers to trade cryptocurrencies or
digital currencies for other assets, such as conventional fiat money or other digital currencies.
Customers buy or sell digital currency from digital currency exchanges, who transfer the
digital currency into or out of the customer’s account. A digital currency exchange can be a
brick-and-mortar business or a strictly online business. As an online business, it exchanges
electronically transferred money and digital currencies.
(ii) DGGI investigated and booked cases against companies engaged primarily in the business
of running online Crypto Assets Exchange Platforms. The said online platform facilitates
crypto assets transactions between users who are unwilling/unable to communicate directly.
The company acts as a moderator or a link between the parties of crypto assets trading (i.e.,
a buyer who wants to buy crypto assets and a seller who wants to sell crypto assets). In lieu
of this facilitation of crypto trade, the company charges transaction fee as a percentage of the
transactions taking place on its platform. The Transaction Fee is / can be in both the forms i.e.,
INR as well as Crypto. The transaction fee when charged in the form of Crypto is basically
reduced from the seller’s crypto assets offered for sale on the platform and buyer’s crypto
ledger and credited to the company’s crypto ledger. The company valuates the crypto assets
at the equivalent INR value of the concerned crypto at the instance the transaction takes
place. However, the transactions only take place virtually in the INR and crypto ledgers
maintained by these online platforms and no actual transfer of crypto assets take place. In

these transactions, the company works as an intermediary between the buyers and sellers
engaged in trading of crypto assets on the online platform. The services thus provided by
the company are intermediary services in the scheme of classification of services and GST
@18% (SAC 998599) is leviable on the revenue earned by the company through supply of
aforementioned intermediary services.
a) It emerged during the investigation by DGGI that in general these companies have not
been issuing invoices against the supplies made by them due to the technical challenges
they face in raising transaction wise invoices to the users. They expressed the difficulties
in raising invoice to each user for each transaction that he/she executes on the platform
due to the multiplicity of transactions and the necessity of advanced technical capabilities
such as huge server space, automated mail functionalities, etc. Due to all these issues,
there is no clear process in the companies for raising invoices to the users. On being
pointed out by DGGI, the invoice related provisions under GST laws, these companies
are evaluating ways to solve the challenges in sending invoices for the transactions done
by the users.
b) The transactions of buy and sell of crypto currencies take place virtually on the online
platform. For each transaction, the companies make debit / credit entry in the specified
wallets of users. Even the deposit or withdrawal of money to and from the company
bank account takes place at the request of users and not for every transaction. Therefore,
while the transactions undertaken by users may be huge in number (taking place
as debit/ credit entries on their online wallets), the actual bank transactions for the
particular users take place only at the time of deposit/ withdrawal of fiat currency.

c) As the companies are not raising transaction wise invoices and the transactions are
taking place in a virtual manner, the methods adopted by the companies for assessment
of their revenue appear to be questionable, which has manifested in evasion of their
GST liability.
(ii) Though, the services provided by Crypto Exchange Platforms are classifiable as intermediary
services in the scheme of classification of services and GST @18% (SAC 998599) is leviable
on the revenue earned by the companies running these Crypto Exchange Platforms through
supply of aforementioned intermediary services. The Crypto Exchange Platforms investigated
by DGGI, were found to be evading payment of GST leviable on their commission / fee
income received in lieu of intermediary services provided to the registered users of Crypto
Exchange Platforms. Some of the Crypto Exchange Platforms were found suppressing
their taxable revenue while filing their GST Returns and some others were found wrongly
declaring them as nil rated / zero rated / exempted / non-taxable.
Amount Detected : Rs. 9.22 Crores
Voluntary Payment : Rs. 12.6 Crores
6.8 Clandestine Supply of Services

Services sector contributes more than 50% of India’s GDP. Due to the intangible nature of supply
of services, where there is no physical movement and e-way bills are not issued, it is much more
difficult to book cases of clandestine supply in service sector unless direct evidence in form of
internal records are recovered from the supplier. It has been seen that the services where such
cases are booked are provided in retail to unregistered persons where bills/ invoices are not
issued and the recipients are not going to avail ITC and even though when bills are issued for
these services, GST is charged and collected but not deposited by the supplier. Some of the
sectors identified where this evasion is more prevalent are as follows:
6.8.1 Courier and Parcel Services- Overseas courier service providers book parcels/
consignments of exporters, using Cargo services of Airlines or courier services from major
courier service providers. These suppliers buy space in bulk from Airlines or Courier service
providers. The complete space is not utilized by them and is further sold to other small courier
service providers.
In one of the case, the service provider had booking agents all over India, which collected
the consignments/ parcels from customers and took consideration mainly in cash, which
was deposited in their banks or sent to their main office through employees/Angadiyas. It
was found that they had maintained data in a private server, containing details of customers,
receipt numbers with date, mode of payment in cash or cheque/Paytm/ NEFT/RTGS etc.
There was substantial difference between the consideration received and taxable value on

which tax was paid. In some cases bills are issued to the customers and GST is charged but not
deposited with the government exchequer.
6.8.2 Construction services:- It has been observed that instead of outright clandestine supply,
there is huge undervaluation of supply in this sector as total consideration received is not reflected
in invoices/ GST returns. The modus is of accepting money in cash for part consideration or
asking the customer to pay for their input supply like man power, goods etc. Further, it has
been observed that sometimes GST is not being paid by contractors under the impression that
supply to Government is exempt. Further, even when TDS has been deducted such contractors
do not pay GST on full supply made to Government, Government authorities and specified
Government agencies.
6.8.3 Hotel industry:- The modus of evasion of GST is through clandestine supply as well as
undervaluation. Parallel accounts are maintained for unaccounted or undervalued supply. The
consideration for such events is mostly received in cash, which is not declared in returns. In one
interesting case payments were received in Paytm accounts of the employees.
Further, payments in r/o input supplies are made in cash and the amount received in cash from
their customers are adjusted for such payments. Therefore, it becomes difficult to ascertain the
actual volume of their output supply from their accounted for inward supplies.
6.8.4 Works contract services: The labor cost is charged separately from the customer and as
labor is paid in cash on daily basis, therefore, the invoices contain mostly the cost of input
material (which is also under reported) and very small value is shown towards service portion.
6.8.5 Restaurant services: On account of almost all of the supplies being B2C supplies, once a
customer leaves the restaurant premises, the data of such customers can be easily deleted by the
suppliers. The modus is simply that the invoices or bills have either duplicate serial numbers or
are deleted after issuance to the customers.
6.8.6 Professional services like consultancy Services, Business Support services etc. evade GST
by receiving consideration in cash and thus suppressing taxable value on their services provided
in B2C mode. In B2B supplies also, they execute the contracts below the actual consideration.
Rest of the consideration is received in cash.
6.8.7 Transport of Goods and passenger services: Besides under reporting the supplies made
under B2C mode, where consideration is received in cash, even in B2B supplies where there is
mostly tax liability on recipient under RCM, it has been observed that consignment notes are not
entered in accounting books as such goods are supplied clandestinely and it is intended to leave
no trail of these clandestine supplies. Further, GTA suppliers may give their bilty books to such
registered persons, who are involved in clandestine supply of their goods and trucks are taken
by such registered persons from market and the details of transporters are either not entered in
e-way bill system or entered erroneously.

6.8.8 Job work services: These services are mainly taken by manufacturers who can take ITC
and have no incentive for evasion of GST but their job workers are either not interested in GST
formalities and don’t get registered or principal supplier are also not interested in revealing the
name of their artisans or job workers to their rivals and therefore gets the work done in cash.
This type of evasion is more prevalent in textile and Jewelry sector.
Further, it has been observed that as there is not much emphasis on keeping proper account of
job work challans, it has been gathered that finished good and wastage arising out of job work
are supplied from the premises of the Job Worker without issuance of invoices. After tax period
is over, job work challans are destroyed. The inputs on which ITC has already been taken are
adjusted as wastage or manufacturing losses by principal supplier. Such job workers receive
payment in cash and they do not report such supply in their GST returns. Thus, they also evade
GST.
6.8.9 Commercial Coaching Services:- Most of the medium and small suppliers collect most
of their fees in cash. They either don’t show the exact number of students enrolled in their
institute or show collection of much lesser fees as it is mostly collected in cash. Apart from this
many ancillary charges are collected separately like coaching material, bags etc. which is part of
composite supply but are not reported in GST returns. In this sector, it has been observed that
various small suppliers don’t get registered although they have crossed the threshold limit for
GST registration.
6.8.10 Leasing and Rental services:- In this kind of services, contracts between the supplier and
recipient are usually under-valued. The differential amount is paid in cash. In most of the cases,
the suppliers for leasing or renting out his moveable or immoveable property on condition of
collecting in cash as that decrease their income tax liability also.
6.8.11 Event Management Services: Such service providers usually ask their customers to pay
to their input suppliers i.e. logistics, vehicle suppliers, manual laborers etc. in cash. In this way,
they undervalue their supply, which is not reported in GST returns and results in GST evasion.
6.8.12 Non Payment of GST on Royalty under RCM: Royalty is being collected by State
Government for giving mining rights to extract and explore minerals, which is taxable under
RCM. However, there is wide spread evasion as GST is not being paid on these
6.8.13 Tour Operator Services: These services are provided mainly for organising tours. There is
wide spread undervaluation and clandestine supply in this sector also as customers book their
tor mainly in cash.
6.8.14 Transfer of Development Rights (TDR Services): Prior to 01.04.2018, the liability to pay
GST on the transfer of Development Rights was with the supplier under forward charge, and
in such cases, the suppliers or the land owners who transferred their development rights to
builder/promoter under area sharing agreement in lieu of constructed flats provided by the

builder. However, it is observed that in such cases, land owners/ suppliers of development
rights have not discharged applicable GST on such supplies.
6.8.15 GST on Clinical Trail: The principal object of the clinical trials is to carry out clinical
research activities to determine the safety and effectiveness (efficacy) of medications, devices,
diagnostic products, and treatment regimens intended for human use. Clinical Trials services
are not in connection with the diagnosis or treatment or care for illness but are related to support
services for research. Hence, they are not exempted but most of the hospitals have not paid GST
on these services under assumption that these services are also mot liable to tax.
6.8.16 Import and Export of Services: Large number of registered persons are importing
services on which they are liable to pay tax under RCM but not paying GST under assumption
that these services are not taxable. Further, in case of some services specified in section 13 of
IGST Act, 2017, the place of supply is location of supplier instead of recipient of services and
therefore some of the services, although supplied to a person located outside India are not
export of services and are taxable in India.
6.9 New Emerging Trends

6.9.1. Evasion by Film Production houses: The
film industry, being a significant contributor to
the economy, has not been immune to instances
of tax evasion, including under reporting of
income, manipulation of transactions, fraudulent
practices, etc. Most of the actors/artists/
stage actors have set up their own production
houses and services provided by the artist to the
production house are considered as supply and
covered under GST Act. However, in many cases,
no GST was being paid on such supplies by the
production houses. Artists pleaded that the production house belongs to them and service to
own production house is not liable to pay GST.
However, Artists and production house are
distinct entities and Services rendered by actors
to the production house are liable to pay GST.
The valuation of such supplies would have to be
determined as per extant law and Rules.
6.9.2. Evasion by Builders: GST evasion by

builders and real estate developers has been a
concern since the implementation of the Goods
and Services Tax (GST) regime. Builders have a
tendency to classify smaller dwelling units under

the category of affordable housing schemes and are thereby paying GST at lower rates. Also,
builders incorrectly claim exemption under affordable housing scheme, as affordable housing
properties are taxed at 1% GST without ITC. For the rest, the rate of tax is 5% without ITC.
Definition of affordable residential apartment: Carpet area upto 60 sqm in metro, Carpet
area upto 90sqm in non-metro and having value upto Rs. 45 lacs for both cases.
6.9.3. Non-payment of tax on import of

services mainly in respect of expenses IPR,
Patent, Technology & Dossiers expenses etc.:
Non-payment of tax on the import of services,
particularly in relation to expenses related to
Intellectual Property Rights (IPR), patents,
technology & dossiers, is one of the emerging
areas of evasion of GST. It has been noticed
that various pharmaceutical companies and
research organizations pay a huge sum to foreign
Governments/Foreign Govt. Departments for
approval of their drugs for export or for filing
applications for Intellectual Property Rights or
for filing patent or copyrights etc. Companies
and research organisations are also booking expenditure under the head of “Regulatory Fee for
Patent / Products & Plant Registration / Export” wherein they have made payment to foreign
entities. These are the services being received by the taxpayers from foreign entities and are liable
to payment of GST under reverse charge mechanism. It has been noticed that taxpayers falling
under such categories i.e. Pharmaceutical companies or other Research and Development units
are showing such expenditures in their books of accounts and no tax is being paid on the same.

7. New Initiatives
7.1 Cyber Forensic Labs
With the rapid development of information technology, our society is firmly entrenched in the
digital age. Computers, mobile devices, and related technologies have become deeply integrated
into people’s work and daily lives, bringing about significant enrichment and transformation.
However, alongside these advancements, there has been a surge in criminal activities exploiting
these technologies. This has led to the emergence of various violations and crimes that involve
digital material evidence, which has become a crucial and novel form of evidence in numerous
cases. Considering the increasing prevalence of digital devices, it is foreseeable that criminals,
knowingly or unknowingly, will leave more and more digital traces on these devices.
In this landscape, digital forensics plays a pivotal role in investigating financial crimes through
the collection and analysis of digital evidence. Financial crimes, driven by monetary gains,
encompass a wide range of offenses such as fraud, embezzlement, money laundering, and GST
evasion. In all these cases, digital forensics becomes an indispensable tool for gathering and
examining digital evidence.
A Memorandum of Understanding
(MOU) was executed between
National Forensic Sciences University
(NFSU) and Directorate General
of GST Intelligence (DGGI), on 7th
February 2023, for setting up of 5
digital forensic laboratories (1 at
each SNU and 1 at NFSU).
The MoU aims to facilitate the exchange of information and knowledge, technological
advancements, and skills development between NFSU and DGGI in the field of training, research,
and forensics capability development. NFSU and DGGI have agreed to exchange information
on research and education programs, jointly organize seminars, conferences and workshops,
collaborate in research and training programs, establish labs and provide technical assistance to
each other. The total project cost is of Rs. 16.06 crores approx. All the Five labs will be manned
by 1 Scientific Officer and 2 Scientific Assistants each.
The MoU recognizes the importance of digital forensics in the 21st Century and the need for
law enforcement agencies to be technologically advanced. Central Board of Indirect Taxes
and Customs (CBIC) by setting up digital forensic lab will use technology in a “more potent

way” to detect tax evasion by using online data. NFSU has the capability to study and analyze
digital evidence and has state-of-the-art technology in the field of digital forensics. DGGI faces
challenges in dealing with digital evidence and requires the ability to retrieve, analyze and
adduce digital evidence. This MoU is aimed at strengthening the forensic capabilities of both
institutions and providing mutual benefits in research and education. Hence, the MoU between
NFSU and DGGI will encourage collaboration in the field of forensic sciences and contribute
to the development of forensic and technological capabilities in India.
A Detailed Project Report (DPR) was submitted by NFSU outlining the following:
i) Setting up of in-house digital forensics labs

ii) Proficiency in data retrieval and handling of digital devices during operations
iii) Capacity building
for setting up Labs at 05 locations i.e. at Delhi, Chennai, Mumbai and Kolkata and fifth
dedicated laboratory at NFSU Headquarters Gandhinagar, the proposal was accorded approval
in December 2022 under 1% Incremental Revenue Scheme for the said project and immediately
the process for setting up the labs was started. MoU and MoA was signed between DGGI and
NFSU on 07.02.2023 at NFSU at Gandhinagar. The process of preparation of sites and procuring
the equipment etc. as well as recruitment of contractual staff for proposed five DFLs has been
initiated. NFSU is onboard to handhold the DGGI for establishing and running the Digital
Forensic Labs and capacity building by also training the officers of the Directorate for next 5
years.

7.2 E Waste Disposal Campaign
The special Campaign 2.0 for “Swachhta” (Cleanliness) was organized from 2nd October 2022 to
31st October 2022 in DGGI and all its Zonal and Regional Units spread across the country. Shri
Vivek Johri, Chairman, CBIC launched E-Waste Disposal Campaign at DGGI (Headquarters),
New Delhi.
Cleanliness drives with special focus on space management and enhancing work place experience
of field Offices were conducted in DGGI formations which focused on improvement of record
management, categorisation, recording, review and weeding out of physical records, overall
cleanliness of Government offices by removing redundant scrap material and obsolete items
thereby enhancing work place experience.
Under the e-waste disposal drive 688 kg of e-waste which included printers, computers, scanners
and their parts were identified and Chairman CBIC handed over the e-waste to the designated
agency for disposal in compliance with the E-Waste (Management) Rules, 2016.

7.3 Training and Capacity Building among officers of DGGI
Introduction: Training, capacity building and knowledge sharing are crucial for any organiza-
tion for being abreast with the latest development in the field, having uniformity in approach
and empowering and guiding the officers. Keeping this in view, training and capacity building
remains a key focus area for DGGI.
DGGI has a working strength of approx. 124 officers in AD/DD level out of total working
strength of about 197 Group ‘A’ officers. These officers come from diverse backgrounds and
have different experiences and skill sets. During the period, DGGI initiated an “Internal
Capacity Building Programme”, wherein DGGI officers and other external resources including
retired senior officers, with domain expertise in various fields, conducted intensive interactive
sessions with young officers. An attempt was made to harmonize the different skill sets and
ensure that all officers at the cutting edge level of ADs/DDs are able to contribute to and derive
benefits from this common pool of knowledge. The unique feature of this programme is that
largely ADs/ DDs themselves among others are used as resource person for skill upgradation.
However, other resource persons, both within CBIC as well as outside were also tapped to
augment these efforts.
Objectives: This effort aims at disseminating best practices, while also enabling officers to learn
from one another and adapt and thrive in the fast-changing environment. The outcome of this
initiative covers the following aspects:
Features: This interactive “Internal Capacity Building Programme” series was held online
with DGGI (HQ) coordinating this initiative. Specific topics were identified to supplement the

knowledge of the officers of DGGI in the relevant fields. The interactive sessions were recorded
for subsequent larger dissemination and for building up a e-learning library and reference
intended for use by officers and other functional requirements.
A list of such 13 sessions alongwith their recordings and PPTs in DVD form has been
prepared and disseminated among 4 SNUs and 26 ZUs for training and information purpose.
The moderated interaction also included reciprocal feedback review wherein both training
participants and resource persons provided app based online feedback, largely to improve this
exercise further. These feedbacks were analyzed and will be used for improvements in future
for such training sessions. Some of the key topics/sessions covered during this programme are
briefly as given below.
Sessions on data mining/ analytics were held to augment abilities of officers to understand and
use available tools such as ADVAIT, NETRA, e-way bill portal, BIFA and others on a regular
basis.
Best Practices session by the Deputy Analytics using ADVAIT Session by the
Director, DGGI Chennai ZU Pr. ADG, DG Systems
Financial Accounting and ERPs was another key area that enables investigating officers to
understand intricacies involved therein, including concepts like balance sheets, income, cash
flow, audit, bank reconciliation, International Financial Reporting Standards, valuation, Ledger,
Costing Assets, Liabilities, auditor related documents.
Litigation Management is a natural corollary of the enforcement activities of DGGI. The

officers need to be in tune with the view taken by Courts in matters of arrest, anticipatory bail,
prosecution, filing of SLPs, etc. Efficacious actions at the appropriate judicial fora significantly
reduces the need to agitate the issue at higher courts.

Cyber Forensics Session by Deputy Capacity Building Session by Pr. ADG,
Director, DG Systems, Mumbai DGTS
During the financial year 2022-23, 20 sessions of one to two hours each in this series have been
conducted covering various domains.
Feedback Mechanism: A reciprocal feedback review mechanism was developed wherein

feedbacks from the participants regarding the sessions and the speaker have been taken after
completion of every session. Majority of the participants have appreciated this initiative of
DGGI and also suggested that these sessions are very informative that have not only cleared
their doubts but have also opened new horizons. It was also requested to continue this initiative
and extend such sessions to SIO/IO level to be organized at the Zonal Unit end. The feedback
of the sessions has also been communicated to the speaker of the sessions for learning and
understanding the need of the participants.
Other trainings: Officers and staff of DGGI were also nominated and trained in regular
training programs organized by NACIN, other training institutes and departments from
time to time.
An ADVAIT boot camp for DD/AD level officers of DGGI had been organized by DG Systems
ADVAIT Team headed by ADG Systems at Zonal Training Institute, NACIN, New Delhi on
17th & 18th October, 2022. The programme has given insight into use of ADVAIT tool for holistic
approach in revenue investigations. This training has given a boost to use of data analytics in
revenue investigations.
The continued training and capacity building has indeed strengthened the knowledge base of
the officers which is helping in investigations done by DGGI team.

7.4 Infrastructural Development
Delhi Zonal Unit shifted from old building at R. K. Puram to a new building at Dwarka, New
Delhi.

8. Presidential Awards
On the occasion of Republic Day, 2023, the following Officers of DGGI were conferred for the
Presidential Certificate of Appreciation for “Specially Distinguished Record of Service”:
(i) Shri R. Govindan, Senior Intelligence Officer, Directorate General of Goods & Services Tax
Intelligence (DGGI), Chennai Zonal Unit.
(ii) Shri Riwaj Dorjay, Senior Intelligence Officer, Directorate General of Goods & Services Tax
Intelligence (DGGI), Guwahati Zonal Unit.

9. Memoirs : DGGI Annual
Conference 2022
The Annual Conference of DGGI for the year 2022, was held in Chandigarh, on 17-18 November,
2022.

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ANNUAL REPORT

In the face of unprecedented challenges, such as the economic

(Sanjay Kumar Agarwal)

Annual Report 2022-23 3

The reorganisation approved by Finance Minister for implementation

Annual Report 2022-23 5

(Anil Kumar Gupta)

Annual Report 2022-23 7

3. Analysis of Tax Evasion Trends 28

4. Fake Invoicing & Fake ITC 35

Annual Report 2022-23 9

10 Annual Report 2022-23

Annual Report 2022-23 11

12 Annual Report 2022-23

Annual Report 2022-23 13

14 Annual Report 2022-23

Collection, Investigating Studying the Coordinating Supplementing

1.5 The Changing Roles of DGGI

Annual Report 2022-23 15

16 Annual Report 2022-23

Central Excise Service Tax

Annual Report 2022-23 17

Detection Voluntary Payment

18 Annual Report 2022-23

No. of Cases Amount (in Rs. Crore)

Annual Report 2022-23 19

No. of Cases Amount (in Rs. Crore)

20 Annual Report 2022-23

Detection Voluntary Payment

Annual Report 2022-23 21

22 Annual Report 2022-23

Annual Report 2022-23 23

Sr. Modus Operandi No. of Cases GST Evaded

24 Annual Report 2022-23

Sr. Evasion Prone Goods No. of Cases Amount of Tax

No. of Cases Amount Evaded (in Rs. Crore)

Annual Report 2022-23 25

Sr. No. Evasion Prone Services No. of Cases Amount of Tax

No. of Cases Amount of Tax Evaded (in Rs. Crore)

26 Annual Report 2022-23

Annual Report 2022-23 27

3.1 Short Payment of Tax by Undervaluing Taxable goods and services:

S r . Modus Operandi (in brief) Goods/ Amount of duty

28 Annual Report 2022-23

Sr. Modus Operandi (in brief) Goods/ Amount of

Annual Report 2022-23 29

Sr. Modus Operandi (in brief) Goods/ Service Amount of duty

30 Annual Report 2022-23

Annual Report 2022-23 31

Sr. Modus Operandi (in brief) Goods/Services Amount of duty evasion

32 Annual Report 2022-23

Sr. Modus Operandi (in brief) Goods/ Amount of duty

Annual Report 2022-23 33

34 Annual Report 2022-23

Motives behind Fake ITC

Annual Report 2022-23 35

Total Unawareness of Misuse of KYCs

Proprietor of the fake firm was found to

36 Annual Report 2022-23