Gujarat reported 17,588 GST evasion cases involving Rs 18,491 crore over the last three years, with tax evasion rising sharply in 2025-26. The number of cases jumped from 1,796 in 2023-24 to 3,281 in 2024-25 and then surged to 12,511 in 2025-26. Similarly, the amount involved rose from Rs 2,549 crore to Rs 3,310 crore and then tripled to Rs 12,632 crore in 2025-26, according to figures cited by Gujarat Pradesh Congress Committee spokesperson Hiren Banker.
The Congress alleged that the figures reflected weaknesses in the implementation of GST and questioned whether the government’s early-warning mechanisms were adequate to prevent tax evasion. “This is not ordinary tax evasion; it directly affects the hard-earned money of the people. Such a huge amount could have been used to build schools, hospitals and infrastructure,” Banker said.
Question on action taken
He also questioned the actions taken by central investigative agencies in the wake of such large-scale tax evasion. “How many cases have been registered by the ED and CBI after crores of rupees were siphoned off? Where was the money used? These questions are also concerning from the perspective of state security,” he said.
Difficulties faced by SMEs in the state
The Congress further linked tax evasion issue with the difficulties faced by small and medium enterprises in the state. According to the party, 11,150 MSME units shut down in Gujarat over the last two years. It alleged that a complicated GST system, frequent changes in rules, compliance requirements and problems with the GST portal had increased the burden on small traders and entrepreneurs.
The party demanded a small-business-friendly industrial policy and called for simplification of GST procedures and compliance requirements. It also sought strict and exemplary action against those found guilty of tax evasion.
Source from: https://www.ahmedabadmirror.com/gst-evasion-in-guj-touched-rs-18491-crore-in-three-yrs/81919777.html
