A Group of Ministers (GoM) on revenue analysis, chaired by Goa Chief Minister Pramod Sawant, met on Friday to discuss state-wise revenue trends and enforcement strategies under the Goods and Services Tax (GST) regime. The meeting was attended by finance ministers from several states, who shared their experiences and actions in tackling tax evasion. Punjab Finance Minister Harpal Singh Cheema highlighted a “massive” scale of input tax credit (ITC) fraud, estimated to be around ₹2 lakh crore, and proposed various measures to control it.
The GoM discussed ways to curb fraudulent practices, including tighter scrutiny, data integration between states, and enhanced use of analytics to detect anomalies. The meeting also focused on the use of technology-driven solutions, such as AI-enabled monitoring tools, stricter invoice matching, and state-wise enforcement coordination to address fake invoicing and bogus ITC claims.
The GoM was constituted to evaluate trends in state revenues and suggest policy and administrative measures to improve tax compliance. With GST collections consistently crossing the ₹1.8 lakh crore mark in recent months, the focus has shifted towards curbing evasion and misuse of input credits. The next GoM meeting is expected to finalize concrete recommendations for stronger enforcement, which will be presented to the GST Council.
Cheema urged Union Finance Minister Nirmala Sitharaman to convene the next GST Council meeting soon to act on pending issues, including the report on life and health insurance. The GST Council had decided to reconstitute the GoM on Analysis of Revenue from GST with revised terms of reference in its 55th meeting held on December 21, 2024.
The GoM consists of members from various states, including Bihar, Chhattisgarh, Gujarat, Andhra Pradesh, Maharashtra, Punjab, Tamil Nadu, and Telangana. The meeting was attended physically by Sawant, Cheema, and representatives from Chhattisgarh and Maharashtra, while other member states joined via video conference.
The GoM’s efforts to curb tax evasion and enhance the credibility and efficiency of India’s indirect tax system are crucial, given the significant amount of ITC fraud occurring in the country. The use of technology-driven solutions and coordinated enforcement strategies between states can help to detect and prevent fraudulent practices, ensuring that the GST regime is effective in achieving its objectives.