Directorate General of Goods and Service Tax Intelligence

Directorate General of Goods and Service Tax Intelligence

The Directorate General of Goods and Service Tax Intelligence (DGGI) is a governmental organization established to combat tax evasion of indirect taxes. It is crucial in addressing violations and non-compliance of GST and central excise duty. The issue of tax evasion significantly affects society, as the lack of contribution from tax evaders hampers overall development. The DGGI incentivizes the general public to provide information about non-taxpayers by offering monetary rewards and ensuring the protection of their identity. This article aims to cover the important functions and responsibilities of the DGGI.

Sharing of Important Data

The DGGI shares and receives data and information from various enforcement authorities. This data sharing has several advantages, including:

a) Sharing of data for the benefit of stakeholders.

b) Increasing the scope of inspection and audits.

c) Helping to identify fraud.

The DGGI collaborates with authorities such as the income tax department, central economic investigation bureau, financial intelligence bureau, NATGRID, and SFIO. Sharing and receiving data from these authorities catalyze identifying tax evaders within society. It also aids in verifying government records and promoting transparency among different authorities.

Main Responsibilities of DGGI

a) Intelligence Gathering: One of the primary functions of the DGGI is to collect information on individuals involved in tax evasion and non-compliance with GST and indirect taxes. The DGGI gathers intelligence by verifying GST returns and conducting reviews of specific individuals.

b) Investigation: The DGGI is authorised to investigate individuals suspected of tax evasion. These investigations can be initiated based on information provided by the general public. The DGGI is empowered to conduct investigations and seizures related to tax evasion cases.

c) Enforcement: The Directorate General of Goods and Service Tax Intelligence has the power to enforce GST laws. This includes imposing penalties on tax evaders and ensuring compliance with the tax regulations

d) Detecting Frauds: The DGGI has effectively detected tax evasion cases. Between 2021 and 2022, the organization discovered tax evasion amounting to Rs. 54,000 crores and successfully recovered Rs. 21,000 crores. The DGGI has identified various methods used for tax evasion, such as:

• Availing exemption provisions fraudulently.
• Acquiring input tax credit by providing false invoices.
• Failing to pay taxes through the reverse charge mechanism.
• Neglecting to make tax payments on goods and services provided.
• Underreporting the value of goods and services to pay lower taxes.
• Collecting tax from customers but not remitting it to the government.

DGGI Headquarters

The DGGI has its headquarters in Gurugram, Kolkata, Mumbai, and Chennai.

Conclusion

The DGGI has become a prominent organization quickly due to its effective strategies. Recently, the DGGI exposed tax evasion of Rs. 173 crores committed by a single individual.