UNVEILING THE NEXUS: GST REVENUE LOSS; CAUSES AND CONSEQUENCES AND CORRUPTION

AUTHOR – PARTH JOHRI, STUDENT AT AMITY LAW SCHOOL, NOIDA

BEST CITATION – PARTH JOHRI, UNVEILING THE NEXUS: GST REVENUE LOSS; CAUSES AND CONSEQUENCES AND CORRUPTION, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (7) OF 2025, PG. 383-387, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract

This dissertation, titled “Unveiling the Nexus: GST Evasion, Revenue Loss to the Government and Corruption in India”, is the culmination of an extensive research journey undertaken as part of my academic curriculum in pursuit of the B.A. LL.B. degree. It represents a comprehensive effort to explore one of the most pressing challenges in India’s tax administration — the evasion of Goods and Services Tax (GST) — and to propose feasible and forward-looking strategies to mitigate it.

The idea for this dissertation stemmed from an interest in understanding how modern legal and technological frameworks can enhance tax governance in a rapidly digitizing economy. Since its inception in 2017, GST has aimed to unify India’s indirect tax structure. However, the system continues to face challenges from non-compliance, fraudulent invoicing, input tax credit misuse, and enforcement inefficiencies. These challenges formed the foundation of this research, which also includes a detailed review of the legal foundations and statutory structure that governs GST in India.

Spanning seventeen weeks of continuous analysis, the dissertation is built upon a structured series of weekly progress reports. Through these, I explored various dimensions of GST evasion — from sector-specific patterns to the role of administrative loopholes, and from legal enforcement barriers to the promise of emerging technologies such as Artificial Intelligence (AI) in monitoring and compliance. A key part of this project involved evaluating real-world case studies and drawing lessons from international models in countries like South Korea, Brazil, and Estonia.

The research methodology combines doctrinal and analytical approaches, supported by data from government reports, judicial pronouncements, expert opinions, and scholarly literature. Notably, the dissertation includes a dedicated chapter on the integration of AI into the GST framework — a forward-looking exploration of how technology can transform tax enforcement through real-time surveillance, predictive analytics, and fraud detection. This work would not have been possible without the guidance and encouragement of my faculty mentors, whose feedback helped shape the direction and depth of this study. I also wish to express gratitude to professionals and officials who shared valuable insights during informal interviews and discussions.

This dissertation is not only a fulfilment of academic requirements but also a reflection of my passion for tax law, policy innovation, and good governance. I hope that the findings and recommendations offered here serve as a meaningful contribution to the ongoing efforts to strengthen India’s GST ecosystem.