The authorities have detected 61 cases of tax evasion by dealers of tobacco products such as gutka, cigarettes and pan masala across the country, amounting to ₹104.38 crore till June this financial year.
The information was provided to the Lok Sabha on Friday in response to a question on whether the government has assessed the extent of tax evasion, illicit trade and unregulated manufacturing in the Zarda sector.
Tough to estimate revenue loss
In a written reply, Minister of State for Health Prataprao Jadhav stated that the Department of Revenue has informed that the illegal trade of tobacco products is a clandestine activity, making it difficult to accurately estimate the loss of revenue.
However, Jadhav’s reply confirmed that “Central Goods and Services Tax (CGST) zones and Directorate General of Goods and Service Tax Intelligence (DGGI) have detected 61 cases of (tax evasion by) gutka/chewing tobacco/cigarettes/pan masala (entities) involving tax amounting to approximately ₹104.38 crore in the current financial year up to June 2025.”
Enforcement actions and compliance
Regarding steps taken to strengthen the enforcement action, Jadhav explained that the DGGI and CGST officers have been sensitised to deal with the issue.
Their focus is on verifying and enhancing the level of compliance of registered taxpayers as well as identifying unregistered entities to bring them under the tax net.
Regulatory framework for tobacco products
Jadhav also clarified the regulatory landscape surrounding tobacco products.