goods and service tax

India's Financial Update: Revenue Growth, Anti-Evasion, and Infrastructure Developments

Introduction

This communication from the Ministry of Finance, Government of India, presents crucial updates on revenue generation, anti-evasion initiatives, infrastructure advancements, and notable achievements by the Central Board of Indirect Taxes and Customs (CBIC). Despite the challenges posed by the pandemic, significant milestones have been achieved in exports, imports, and collaboration with state GST administrations.

Highlights of the Week

Economic Performance

  • For Fiscal Year 2024–25, India's total exports (including goods and services) reached $820 billion, comprising $395.63 billion in merchandise exports (April–February 2024–25) and $354.90 billion in services.
  • Imports have increased significantly by 69%, totaling $443.82 billion.
  • This strong performance is reflected in positive GST revenue collections, signaling a revival in economic activities.

Collaboration with State GST Administrations

  • The Member (GST) conducted a Revenue Augmentation meeting with CGST and SGST officers in Tamil Nadu, attended by senior officials.
  • Joint meetings led by the Member (Investigations) with CGST and SGST officers in Gujarat, Rajasthan, Punjab, Haryana, Himachal Pradesh, and the Union Territories of Chandigarh and Jammu & Kashmir facilitated the exchange of valuable ideas aimed at enhancing revenue optimization.

Anti-Evasion Efforts

  • At Indira Gandhi International Airport in Delhi, a passenger arriving from Ras Al-Khaimah was intercepted while crossing the Green Channel, resulting in the seizure of Fake Indian Currency Notes (FICN) valued at Rs. 9,50,000. Such seizures are critical for national security.
  • The Jaipur unit of the Directorate General of GST Intelligence (DGGI) made significant progress in a fake billing and Input Tax Credit (ITC) investigation, identifying a network of 636 fake firms responsible for issuing invoices with a taxable value of approximately Rs. 4,500 crore, leading to an ITC claim of around Rs. 741 crore. This success was due to thorough investigations and timely follow-ups.
  • The Directorate of Revenue Intelligence (DRI) arrested seven modules across five states involved in printing counterfeit currency and seized related machinery.

Infrastructure Developments

  • Administrative approval was obtained for the acquisition of 3,100 sq.m of land from the Ahmedabad Urban Development Authority to construct a new DRI office building in Ahmedabad. This facility will feature a Forensic Laboratory, an Armoury, a Lock-up, a creche, and a gym-cum-yoga room.

Conclusion

The week showcased significant contributions from various divisions within the CBIC. The collective efforts in revenue generation, anti-evasion strategies, and community engagement demonstrate the resilience and dedication of the officers and staff.