The Central Board of Indirect Taxes and Customs (CBIC) detected Goods and Services Tax (GST) evasion of ？2.23 trillion in the financial year 2024-25 (FY25), an all time high figure which was 10 per cent more than the previous year’s ？2.02 trillion.
In FY23, the GST evasion stood at ？1.01 trillion.
In FY25, voluntary payments by taxpayers stood at ？28,909 crore, according to data shared at the CBIC Conclave held in New Delhi on Thursday.
Chairing the meeting, Finance Minister Nirmala Sitharaman called for speedy closure of investigations in Customs and CGST cases, stronger action on tax evasion, and time-bound improvements in GST registration and grievance redressal.
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Audit coverage under GST rose from 62.21 per cent in FY23 to 88.74 per cent in FY25, with officials highlighting that no taxpayer had been audited more than once in a three-year span.
Refund performance also improved, with 85 per cent of claims processed within the statutory 60-day limit. The national average for GSTR-3B return filing reached 94.3 per cent during the FY25.
Grievance redressal saw improvement, with the average disposal time reduced to nine days from the stipulated 21-day timeline.
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“An impressive 95 per cent to 97 per cent of CPGRAMS appeals are being disposed of within 30 days. This performance has placed CBIC among the top 5 out of 90 central ministries in CPGRAMS rankings since February 2024,” the release stated.
Sitharaman urged the department to intensify awareness campaigns among taxpayers and trade bodies, particularly on the documentation required for GST registration-- citing frequent rejections due to issues with proof of principal place of business. She called for dedicated helpdesks within CGST zones to assist with registration applications.
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In Customs, cargo facilitation through the Risk Management System rose to 86 per cent in 2025, up from 82 per cent in 2022. The finance minister asked zones to further reduce dwell time for imports and exports at ports and Inland Container Depots (ICDs) to improve India’s trade logistics competitiveness.
As per the government, CBIC handed over 2,140.35 kg of seized gold to the Security Printing and Minting Corporation of India (SPMCIL) in FY25.
Sitharaman also directed CBIC to fill all vacant posts across levels and resolve pending disciplinary matters expeditiously.
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Exporters have suggested shifting cargo movement from Bandar Abbas port to the Chabahar port in the wake of Iran-Israel conflict, stating any further escalation in the war would severely impact trade with Afghanistan, Central Asia, and Russia, an industry official said on Friday.
The official also said that the air freight rates have already seen a 15 per cent rise, and traders expect both air and sea freight costs to increase further if the conflict escalates.
This was suggested during a meeting convened by the commerce ministry on assessing impact of the war on India's trade. It was chaired by Commerce Secretary Sunil Barthwal.
The official also said that while there has been no immediate impact on shipments to Iran, disruptions are likely if the situation worsens.
"If Bandar Abbas port doesn't function, it will affect exports not only to Iran but to Afghanistan and Central Asia also. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently," the exporter said.
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The official, who attended the meeting, said that the secretary assured that the feasibility of shifting operations to Chabahar port would be examined.
A Federation of Indian Export Organisations (FIEO) official said that they would soon hold a meeting with Chabahar port authorities on the issue of shifting the movement of consignments.
"We will enquire about the facilities at the port," the official said, adding, "The shifting call will have to be taken by the shipping lines. DG shipping would look into that." If Strait of Hormuz gets impacted due to the war, "we have to look at Fujairah port in UAE and Oman port", the official said.
FIEO flagged that as of now, Iran's Bandar Abbas port is operational and being used for cargo movement to Afghanistan and other CIS (Commonwealth of Independent States) countries, including Russia.
However, if the conflict continues beyond Monday, the route may be impacted.
"In case ship movement in the Persian Gulf is blocked, exports to Gulf and Mediterranean countries will also suffer. Currently, buyers have put orders on hold, and exporters are delaying shipments due to concerns that goods may get stuck at ports, leading to heavy demurrage," another industry official said.
Although certain factors remain beyond control, in the current circumstances, focus on Chabahar Port -- an Indian-managed port in Iran -- could help the industry.
There is connectivity via Dubai and direct linkage from Kandla Port.
Due to the conflict, Basmati rice exports to Iran have reportedly stopped, and shipments to the Middle East have become expensive.
An exporter said there is a need to improve Chabahar's connectivity to Uzbekistan by engaging local players who may otherwise lose business if Bandar Abbas operations are affected.
As per the exporting community, freight has risen by USD 500-600 per 20-feet container. Ocean freight from Indian ports to EU and Mediterranean ports has surged by USD 1,000 per TEU (twenty-foot equivalent unit).
The meeting was attended by senior officials from the petroleum, commerce, shipping, and financial services, revenue departments, along with representatives from shipping lines, cargo handlers, and airport authorities.
While the Red Sea route remains unaffected and 90 per cent of Indian cargo currently moves via the Cape of Good Hope, concerns were raised about potential disruptions at the Strait of Hormuz.
This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs.
Meanwhile, the exchange of strikes between Iran and Israel has entered the second week on Friday even as President Donald Trump weighed US military involvement and new diplomatic efforts appeared to be underway.
At the same time, Iran's foreign minister is in Geneva for holding talks with his counterparts from France, Germany and the UK and the European Union's foreign policy chief. It is the first face-to-face meeting between Western and Iranian officials since the start of the conflict.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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