Strategic Reform

A viral tweet by Chartered Accountant Aarchana Yadav has triggered a wave of responses from tax professionals and GST stakeholders, voicing frustration over the Central Board of Indirect Taxes and Customs' (CBIC) approach to tackling GST evasion. The conversation erupted after news broke of ₹34,000 crore in GST evasion, prompting concerns that increased scrutiny could translate into harassment of honest dealers. “For this 34k crores, all dealers will be heckled & their life made miserable… If GSTN Evasion exists, then GST department needs to change strategy rather than changing forms,” wrote CA Aarchana Yadav in a tweet directed at @cbic_india. Despite numerous system reforms such as modifications in GSTR-1 and 3B forms, Aadhaar authentication, and physical verifications, evasion persists, exposing cracks in enforcement strategy rather than in compliance structures, many professionals argued. Experts Call for Inclusive Governance Responding to her own tweet, Yadav proposed a participative reform model: “Let CBIC form a forum of taxpayers, advocates, chartered accountants, academicians & other professionals to help them bring effective & systematic governance for GST.” Ground-Level Confusion and Misclassification Daljeet Singh Virdi, another professional, noted that authorities are failing to accurately identify fake invoices. “Circular trading is also classified as fake invoices… If there is a break , how are the invoices still appearing in GSTR 2B?” The ambiguity around classification is reportedly leading to unjustified suspicion and investigation into compliant businesses. Criticism Over Misplaced Enforcement Taxpayer advocate Jitender Ranka took a sharper tone, calling out what he termed “selective enforcement.” “Everyone knows major evasion lies in gutkha, tobacco products, and building materials… but corrupt officers are to blame. You can’t strangle all of India’s businesses by often changing reports.” Waning Trust in Amnesty Measures CA Ameetkumar Jain added that goodwill was already eroding after the government curtailed benefits under the GST amnesty scheme for late 3B return filings, calling it another blow to taxpayer morale. Policy Implication: Need for Recalibration The online exchange lays bare a wider crisis of confidence between taxpayers and tax authorities. While digitisation and data-sharing under GST were meant to ease compliance, many believe the department’s approach remains punitive and poorly targeted. With mounting criticism, the CBIC may soon need to clarify its enforcement roadmap and demonstrate that it can differentiate between willful defaulters and compliant taxpayers caught in procedural crossfire.For this 34k crores, all dealers will be heckled & their life made miserable. Even after making so many changes in R1 & 3B systems, suo moto cancellations, aadhar authentication physical verification etc, if GSTN Evasion exists, then GST department needs to change strategy… pic.twitter.com/9SDXoDcxdi— CA Aarchana Yadav (@aarchanay) June 20, 2025

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