Current Affairs - Economy - Discussion

Karnataka witnessed a massive spike in GST evasion during FY25, with cases surging to ₹39,577 crore across 1,254 instances, alongside nine arrests. This represents a fivefold jump compared to the previous year’s evasion figure of ₹7,202 crore. According to Finance Minister Nirmala Sitharaman’s report to the Lok Sabha, enhanced enforcement, improved analytics, and better data-sharing mechanisms contributed to this rise in detection. Voluntary tax payments amounted to ₹1,623 crore, reflecting partial compliance. Importantly, the government clarified that central GST authorities had not issued notices solely based on UPI transactions, addressing concerns raised by small traders in Bengaluru.