Karnataka sees over fivefold surge in GST evasion in FY25
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Karnataka has recorded a sharp rise in Goods and Services Tax (GST) evasion cases, with the amount detected by Central GST (CGST) officers surging over five times to ₹39,577 crore in the 2024-25 financial year, Finance Minister Nirmala Sitharaman informed Parliament on Monday.
In a written reply to the Lok Sabha, Sitharaman clarified that “Central GST authorities have not issued any notices based on UPI transaction,” addressing concerns about reports of small traders and street vendors receiving GST notices without proper assessment.
She noted that the recent notices in Karnataka were issued by State GST field offices, often based on digital payment footprints such as UPI transactions.
Sharing details of enforcement actions, the minister said that in 2024-25, CGST officers detected 1,254 cases of tax evasion in the state, leading to nine arrests and voluntary payments of ₹1,623 crore. This marks a steep rise from 2023-24, when 925 cases involving ₹7,202 crore were recorded, with two arrests and ₹1,197 crore collected through voluntary compliance.
In comparison, 2022-23 saw 959 cases involving ₹25,839 crore in evasion, two arrests, and ₹1,705 crore in voluntary tax payments.
