GoM flags Rs 2.2 lakh crore GST evasion, eyes sector-specific fixes ahead of council meeting

Ahead of the upcoming GST Council meeting, the Group of Ministers (GoM) on GST Revenue Analysis—chaired by Goa chief minister Pramod Sawant—met on Friday to deliberate on sector-specific tax leakages and potential corrective measures to address GST evasion estimated at over ₹2 lakh crore.

Key issues discussed included a comparative analysis of revenue trends before and after the introduction of GST, identification of sector-specific leakages, assessment of compliance enforcement tools, progress in e-invoicing adoption, IT system upgrades for better traceability, and state-wise policy suggestions to boost revenue. Improved coordination between Central and State tax administrations was also emphasised.

“Chaired a meeting of the Group of Ministers (GoM) on GST Revenue Analysis to review state-wise revenue trends and identify actionable strategies for improved GST collection in New Delhi today,” Sawant said in post on X.

“Our aim is to ensure a robust and equitable GST framework that strengthens India’s fiscal ecosystem and supports the vision of ‘One Nation, One Tax’,” he said.

According to official data, GST evasion in FY25 has been pegged at Rs 2.23 lakh crore, with voluntary tax payments totaling Rs 28,909 crore. Finance minister Nirmala Sitharaman recently reiterated the need to curb tax evasion and misuse of input tax credit (ITC).

GST audit coverage has improved significantly—from 62.21% in FY23 to 88.74% in FY25. The GoM flagged ITC-related fraud as a major concern. States including Gujarat, Telangana, and Rajasthan shared best practices for enhancing GST revenue collection.

Officials said the GoM will meet again soon and subsequently submit its recommendations to the GST Council.

The GoM was reconstituted in March 2025 to analyse GST revenue performance. It includes ministers from nine states: Bihar (Samrat Chaudhary), Chhattisgarh (O P Choudhary), Gujarat (Kanubhai Desai), Andhra Pradesh (P Keshav), Maharashtra (Ajit Pawar), Punjab (Harpal Singh Cheema), Tamil Nadu (Thangam Thennarasu), and Telangana (M B Vikramarka), in addition to Sawant.

Currently, GST is levied under four primary slabs—5%, 12%, 18%, and 28%. Discussions are underway to simplify the structure by possibly merging slabs, including phasing out the 12% rate. Of the total GST revenue, the 18% slab contributes approximately 65%, followed by the 28% slab (16%), 5% (10%), and 12% (8%). The remaining 1% comes from special rates applicable to items like gold, jewellery, and precious stones.