GoM Reviews GST Revenue Trends, Tackles ITC Frauds and Sectoral Leakages

The Group of Ministers (GoM) on GST revenue analysis, headed by Goa Chief Minister Pramod Sawant, convened on Friday to deliberate on measures aimed at strengthening Goods and Services Tax (GST) compliance and plugging revenue leakages. A key focus of the meeting was the growing concern over fraudulent claims of Input Tax Credit (ITC), which have reportedly crossed ₹2 lakh crore.

The GoM discussed a wide range of strategies to counter ITC-related fraud, enhance traceability in transactions, and curb sector-specific leakages that continue to impact tax collections. The ministers examined comparative revenue data from pre-GST and post-GST periods to identify structural inefficiencies and recommend sector-wise corrective action.

Enhancing e-invoicing mechanisms and IT systems was another major agenda point, with the group highlighting the role of digital tools in improving transparency and audit trails across the GST network. Discussions also emphasized the need for better coordination between central and state tax administrations to address tax evasion and ensure effective enforcement.

State-specific policy recommendations were also considered, particularly those tailored to local economic activities and revenue patterns. The GoM acknowledged that improving compliance and plugging leakages require both technological upgrades and administrative synergy.

Sources indicated that the outcomes of the meeting would feed into broader deliberations at the next GST Council session, where long-term reforms to strengthen the indirect tax regime are likely to be proposed.

The meeting comes at a time when the government is pushing for higher revenue mobilization to meet its fiscal targets while maintaining economic momentum. The GoM’s ongoing work is expected to play a critical role in shaping future GST reforms.