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Directorate General of GST Intelligence

The Directorate General of GST Intelligence (DGGI) is the apex intelligence and investigative agency under the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, Government of India, dedicated to combating evasion of Goods and Services Tax (GST). It functions as the premier body for gathering, analyzing, and disseminating actionable intelligence on GST violations, while also conducting investigations into complex, multi-jurisdictional cases that impact national tax revenue. Originally formed in 1978 as the of Anti-Evasion (DGAE) to address central duty evasion, the organization was elevated to full status in 1988 and renamed the of Central Intelligence (DGCEI) in 2009, expanding its mandate to include matters. With the rollout of the regime on July 1, 2017, it underwent restructuring to focus on the unified system and was officially renamed the of Intelligence, aligning its operations with the Central Act, 2017. Headquartered in , DGGI operates through a of four Sub-National Units, 26 Zonal Units, and 40 Regional Units spread across , enabling nationwide coverage for operations. Its core functions encompass monitoring high-risk sectors prone to evasion—such as online gaming, , and fake invoicing—coordinating with agencies like the Directorate General of Revenue Intelligence (DRI) and the (), and providing trend-based insights to CBIC for policy enhancements and legislative reforms. In 2023, DGGI detected 6,323 cases of evasion totaling ₹1,98,324 , marking a 119% year-on-year increase in the value of detected evasion and facilitating voluntary payments of ₹28,362 . In FY 2023–24, detections rose to 6,084 cases totaling ₹2,01,000 , with voluntary payments of ₹26,605 , underscoring its pivotal role in bolstering India's ecosystem.

Introduction

Establishment and Purpose

The Directorate General of GST Intelligence (DGGI) was restructured and renamed in 2017 as part of the reorganization of the Central Board of Indirect Taxes and Customs (CBIC) under the Department of Revenue, , , to align with the implementation of the Tax () regime. This restructuring renamed and expanded the intelligence wing to address the complexities of the new system, evolving from a predecessor focused on central to a specialized body for GST-related matters. Headquartered in , the DGGI operates with nationwide jurisdiction to ensure coordinated oversight across India's federal tax structure. The primary purpose of the DGGI is to combat GST evasion through intelligence-driven operations, targeting fraud, , and non-compliance in indirect taxes. By leveraging advanced analytical tools and inter-agency collaboration, it aims to detect and prevent revenue leakages that undermine the framework, thereby supporting and taxpayer compliance. This focus addresses the unique challenges of , such as interstate trade discrepancies and fake invoicing, which were amplified post-2017. As the apex intelligence body under the CBIC, the DGGI is responsible for collecting, collating, and disseminating actionable intelligence on violations related to , Central Excise, and . It serves as a central hub for sharing insights with field formations and enforcement agencies, enabling proactive interventions against organized networks. This role underscores its mandate to foster a robust, technology-enabled for intelligence, distinct from routine functions.

Legal Framework

The Directorate General of GST Intelligence (DGGI) derives its primary statutory authority from the Central Goods and Services Tax (CGST) Act, 2017, which designates its officers as "proper officers" empowered to conduct intelligence-driven enforcement activities. Specifically, Section 67 of the CGST Act grants DGGI officers the power to authorize and execute inspections, searches, and seizures where there is reason to believe that goods liable to confiscation or documents relevant to tax evasion are concealed in any place. Section 70 further empowers these officers to summon any person to appear and produce documents or give evidence on matters related to GST compliance, treating such summons as equivalent to those issued by a magistrate under the Code of Criminal Procedure, 1973. Additionally, Section 74 enables arrests without warrant in cases involving tax not paid, short paid, or erroneously refunded due to fraud, willful misstatement, or suppression of facts, with safeguards requiring production before a magistrate within 24 hours. These provisions, notified by the Central Board of Indirect Taxes and Customs (CBIC) through instruments such as Circular No. 31/05/2018-GST dated February 9, 2018, affirm DGGI's role in addressing serious evasion cases under the CGST framework. DGGI's mandate extends to the Integrated Goods and Services Tax (IGST) Act, 2017, which mirrors the CGST Act's enforcement sections for inter-state supplies and imports, allowing the agency to investigate and act on intelligence pertaining to integrated tax liabilities. Beyond GST, DGGI retains authority under legacy indirect tax laws, including the Central Excise Act, 1944, where its officers are recognized as "Central Excise Officers" capable of issuing show cause notices and adjudicating demands related to excise duties. Similarly, provisions of the , 1994, governing , empower DGGI to handle outstanding investigations and recoveries from the pre-GST era, ensuring continuity in enforcement against historical evasions. The CBIC formalizes DGGI's pan-India operational scope through targeted notifications, such as those amending Notification No. 2/2017-Central Tax to grant all-India for investigations involving multi-state evasion networks, while mandating coordination with state authorities to avoid overlapping proceedings under Section 6(2) of the CGST Act. This empowerment facilitates seamless intelligence sharing and joint operations across jurisdictions, as outlined in CBIC guidelines emphasizing collaborative enforcement. As an attached office of the CBIC, DGGI operates within the Department of Revenue, , with its activities subject to oversight by the Principal Director General and accountability mechanisms including periodic reporting to the CBIC on investigative outcomes and compliance with procedural safeguards. This structure ensures alignment with national objectives while maintaining internal audits and for actions taken under the aforementioned statutes.

History

Pre-GST Origins

The origins of the Directorate General of GST Intelligence (DGGI) trace back to the late 1970s, when it was established as the Directorate General of Anti-Evasion (DGAE) under the within the Central Board of and (CBEC). Formed in 1978 through an administrative order (F.No.A-11011/30/78-Ad.IV dated 04.12.1978), the DGAE was created specifically to combat evasion of central duties, with initial units set up in , , , and to coordinate intelligence efforts across multiple collectorates. This body focused on investigating offenses involving duty evasion that spanned jurisdictional boundaries, including cases linked to of excisable goods and broader schemes, thereby serving as a centralized anti-evasion wing under the CBEC's oversight. By the early 1980s, the DGAE evolved into a full-fledged in 1983, headed by a , which enhanced its operational autonomy and capacity for intelligence collation on and . In 1988, it was upgraded to a , led by a and structured around four zonal units, marking a significant milestone in institutionalizing specialized anti-evasion operations under the CBEC. The organization continued to prioritize conceptual frameworks for surveillance, emphasizing coordination with field formations to address fragmented systems that facilitated duty evasion and illicit trade. The 2000s brought further expansion and modernization to meet growing challenges in tax administration. In 2000, the DGCEI—following an interim renaming—added regional units under each zonal unit to bolster on-ground gathering, while in 2002, two more zonal units were established in and to cover emerging evasion hotspots. A key development occurred in 2004 when the body was entrusted with detecting evasion, broadening its mandate beyond duties to encompass the expanding sector and related . This period also saw of early technological tools for surveillance, such as data-sharing protocols with CBEC systems, to improve monitoring of networks and tax amid India's evolving regime. Finally, in 2009, it was officially renamed the Directorate General of Central (DGCEI) (F.No.A-11013/37/2000-Ad.IV dated 09.11.2009), reflecting its consolidated role in and . The pre-GST evolution of these anti-evasion units underscored the need for a unified apparatus to tackle the inefficiencies of a fragmented structure, including multiple duties and state-level variations that enabled widespread evasion and . Cadre restructuring initiated in 2014 further strengthened operational capabilities, setting the stage for adaptation to the integrated framework.

Formation and Evolution Post-2017

Following the rollout of the regime on July 1, 2017, the Directorate General of Central Excise Intelligence (DGCEI) was officially renamed the Directorate General of GST Intelligence (DGGI) through a Central Board of (CBIC) office order dated June 12, 2017 (F.No. A-11013/18/2017-Ad.IV), to align its mandate with the new indirect tax framework and enhance focus on GST-specific enforcement. This renaming marked a pivotal shift, integrating the agency's intelligence capabilities directly into GST administration while retaining its core anti-evasion role under the CBIC. In its initial post-renaming phase, the DGGI underwent significant expansion to incorporate GST intelligence functions, including the detection of fake invoices and prevention of fraudulent input tax credit () claims, which emerged as major vulnerabilities in the nascent system. The agency reorganized its structure in March 2017 in anticipation of GST implementation, establishing dedicated units for monitoring multi-jurisdictional transactions and leveraging the GST Network (GSTN) database for real-time intelligence collation. This integration enabled proactive interventions against ITC frauds, where bogus entities generated fictitious invoices to pass on ineligible credits, with early detections uncovering networks involving thousands of crores in evaded tax. Between 2018 and 2020, the DGGI advanced its capabilities through enhancements in digital tools and data analytics, adopting systems like ADVAIT for predictive modeling, NETRA for network analysis, and the e-way bill portal for tracking interstate movements to identify evasion patterns. These tools facilitated deeper scrutiny of high-risk sectors such as iron and steel, where undervaluation and fake billing were prevalent, leading to a surge in intelligence-led detections. By 2020, the agency's emphasis on analytics had transformed manual processes into automated frameworks, significantly improving the efficiency of prevention. From 2021 to 2023, the DGGI intensified its focus on inter-state evasion networks, coordinating with zonal units to dismantle syndicates spanning multiple states that exploited GST's seamless credit flow for circular trading and bogus registrations. This period saw heightened enforcement against organized frauds, including 1,940 fake cases with detections totaling over ₹13,175 , often involving shell companies in sectors like tobacco and metals. The agency's intelligence network expanded to 26 zonal and 40 regional units, enabling targeted operations that recovered substantial revenues through voluntary payments and arrests. As of 2025, the DGGI has placed increased emphasis on AI-driven , deploying algorithms to analyze GSTR filings and e-way bills for anomalies in real-time, which has accelerated the identification of sophisticated frauds like those in online gaming and exports. This technological upgrade has resulted in detections exceeding ₹2 lakh crore in FY24 alone, doubling prior years' figures. Additionally, the agency has strengthened coordination with international bodies, proposing reciprocal information-sharing agreements with foreign governments to combat cross-border frauds in OIDAR services and seconded employee schemes, addressing evasions estimated at over ₹1,300 crore in related cases.

Organizational Structure

Headquarters and Leadership

The headquarters of the Directorate General of GST Intelligence (DGGI) is situated at West Block-8, Wing No. 6, 1st and 2nd Floors, R.K. Puram, - 110066. This central facility serves as the nerve center for the organization's administrative functions, including policy formulation, training programs for personnel, and coordination of intelligence activities across sub-national and zonal units. The DGGI is headed by a Principal Director General, an officer from the (Customs and Indirect Taxes) at the apex scale, who reports to the Central Board of Indirect Taxes and (CBIC). The Principal Director General is responsible for overseeing the strategic direction, policy implementation, and overall coordination of intelligence operations related to goods and services tax evasion. Supporting the Principal Director General are several Additional Director Generals (ADGs), who manage specialized functions such as intelligence collation, analysis, legal affairs, and zonal oversight. These ADGs ensure the integration of intelligence from field units into actionable enforcement strategies. As of November 2025, the Principal Director General position is held by Shri Rajesh Pandey, IRS, who assumed the role in October 2024 following CBIC administrative orders and has focused on enhancing inter-agency collaboration for tax compliance. Additional Director Generals, including those handling key portfolios like investigation and risk management, are appointed through periodic CBIC transfer orders to maintain operational efficiency.

Zonal Units and Field Operations

The Directorate General of GST Intelligence (DGGI) maintains a decentralized operational through its sub-national, zonal, and regional units, which form the backbone of its regional intelligence network across . These units facilitate localized monitoring and response to GST-related evasion activities, ensuring proximity to economic hubs and corridors. The operates with 4 Sub-National Units (SNUs)—North in , East in , West in , and South in —each headed by a ; these oversee 26 Zonal Units (each led by a Principal Additional Director General or Additional Director General) and 40 Regional Units (each led by a or ). This structure allows for targeted oversight in diverse geographical and economic contexts, with units aligned to specific regional priorities such as in the west or in the central region. The zonal and regional units enable proactive identification of evasion patterns through ongoing of activities and collaboration with teams. For instance, efforts involve tracking suspicious transactions and anomalies, while raids are conducted based on collated to seize and detain suspects. Local coordination ensures seamless with broader CBIC operations, enhancing the of intelligence-driven interventions. Field operations under these units emphasize hands-on intelligence gathering, with officers deployed to collect data directly from trade sources, industry associations, and market networks. This includes verifying invoice authenticity and documentation on-site to detect discrepancies indicative of . Additionally, teams maintain regular liaison with state departments, sharing actionable intelligence and coordinating joint operations to address cross-jurisdictional evasion. Such activities underscore the DGGI's role in bridging central and state-level , fostering a unified approach to compliance. Nationwide, the DGGI employs approximately 1,000-1,500 personnel, comprising (IRS) officers specialized in and enforcement, alongside technical and support staff. This lean staffing model supports agile field deployments while prioritizing expertise in and investigative techniques across the .

Functions and Responsibilities

Intelligence Collection and Collation

The Directorate General of GST Intelligence (DGGI) primarily collects through sources, such as informants who provide tips on and receive rewards under CBIC guidelines, as well as inputs from associations reporting suspicious activities in sectors like and services. Open-source from GST (GSTN) portals, public reports, and publications forms another key channel, enabling the identification of patterns in taxpayer behavior and market trends. Additionally, technical surveillance involves advanced analytics on input (ITC) claims, scrutinizing transaction records for discrepancies in through integrated systems. Collation of this raw intelligence occurs via a centralized database, notably the Business Intelligence and Fraud Analytics (BIFA) platform developed by GSTN, which aggregates data from across the GST ecosystem for cross-verification of invoices against actual supplies. Algorithms within BIFA and related tools detect anomalies, such as mismatched invoice chains indicative of circular trading—where entities pass fictitious invoices in loops to inflate —or the proliferation of bogus firms with shell registrations used solely for fraudulent claims. This process prioritizes conceptual over isolated transactions, ensuring scalable analysis of network-based evasions. DGGI's intelligence efforts target specific fraud vectors, including fake billing networks that generate phantom invoices to enable undue ITC pass-through, under-reporting of turnover to suppress tax liability, and export refund frauds involving bogus outward supplies to claim integrated GST (IGST) refunds without genuine exports. For instance, operations have uncovered schemes where dormant companies are reactivated to issue fake export invoices, siphoning refunds worth billions. To maintain integrity, internal protocols mandate rigorous verification of all tips and intelligence inputs prior to escalation, involving preliminary checks and approvals from zonal heads to filter unsubstantiated leads.

Dissemination and Enforcement Support

The Directorate General of GST Intelligence (DGGI) plays a pivotal role in disseminating collated to enable effective across various agencies. It shares actionable insights through secure portals and dedicated channels, including Circulars and Alert Circulars, which are distributed to field formations of the Central Board of Indirect Taxes and Customs (CBIC), state Goods and Services (GST) officers, and the (ED). These dissemination mechanisms ensure timely alerts on evasion risks, allowing enforcement units to initiate targeted actions without compromising operational security. In supporting enforcement activities, DGGI compiles detailed evidence dossiers that serve as foundational support for prosecutions in complex GST evasion cases. Additionally, it aids field officers by providing specialized guidance on recognizing evasion patterns, such as fake invoicing networks and input frauds, often through modules and advisory circulars that enhance investigative capabilities. This support extends to facilitating voluntary by taxpayers upon receipt of intelligence-based communications, thereby streamlining processes. DGGI fosters inter-agency coordination to address multifaceted , particularly in cross-border scenarios. It collaborates closely with domestic entities like the (CBI), ED, (DRI), and Financial Intelligence Unit-India (FIU-IND) for data sharing and joint operations, while engaging international organizations such as the (WCO) to tackle global supply chain frauds. These partnerships have been instrumental in uncovering transnational evasion schemes, with DGGI acting as a central hub for intelligence exchange to bolster collective enforcement efforts. The contributions of DGGI's dissemination and support functions have yielded substantial impacts on tax recovery. For instance, in FY 2022-23, intelligence leads from DGGI facilitated the detection of ₹1,01,354 in evaded and the voluntary recovery of ₹20,713 , alongside arrests and 154 prosecutions. In FY 2023-24, detections rose to ₹2.01 across 6,084 cases, with voluntary recoveries of ₹26,598 and 147 arrests, underscoring DGGI's ongoing role in strengthening compliance and revenue integrity.

Powers and Operations

Investigative Authorities

The Directorate General of GST Intelligence (DGGI) is empowered as a proper officer under the Central Goods and Services Tax (CGST) Act, 2017, to exercise specific investigative authorities aimed at uncovering and ensuring compliance. These powers are derived from key provisions of the Act, enabling DGGI officers to conduct inquiries, inspections, and enforcement actions in coordination with the Central Board of Indirect Taxes and Customs (CBIC). Under Section 67 of the CGST Act, DGGI officers, not below the rank of Joint Commissioner, are authorized to inspect any place of business, warehouse, or godown if there are reasons to believe that a taxable person is engaged in , suppression of transactions, or contravention of the Act's provisions. This power extends to operations, where an officer may, with a written from the Joint Commissioner or above, search premises and seize , documents, books, or other things believed to be liable for , provided access is denied or items are secreted. Procedural requirements include documenting reasons for the action in writing and retaining seized items only for as long as necessary for , with options for provisional release on or equivalent to the , , and penalty involved. If no show cause notice is issued within six months (extendable by another six months for sufficient cause), the seized must be returned. Section 70 grants DGGI officers the authority to summon any person to give or produce documents or things relevant to an inquiry under the Act, exercising powers akin to those of a civil court under the Code of Civil Procedure, 1908. The summoned individual must attend in person or through an authorized representative and provide truthful statements, which are treated as in judicial proceedings under Sections 193 and 228 of the . Recent amendments emphasize that such statements should be recorded during office hours, preferably under and in the presence of legal counsel to uphold against . For serious violations, Section 69 empowers the to authorize the of a person if there is reason to believe they have committed a cognizable and non-bailable offense under Section 132 of the CGST Act, such as issuing invoices without supply of goods or services (leading to fraudulent input claims) or availing input using fake invoices, where the tax evaded, wrongly availed, or utilized exceeds ₹5 . Upon , the officer must inform the person of the grounds for and produce them before a within 24 hours, excluding travel time, after which the person may be released on or further remanded. This provision applies to DGGI in cases of large-scale evasion with pan-India implications, targeting key operators or masterminds. Procedural safeguards are integral to these powers, ensuring accountability and protection of rights. Reasons for inspections, searches, summons, or arrests must be recorded in writing prior to action, witnesses present during searches are entitled to copies of seizure memos, and all proceedings must adhere to principles of . Affected parties have the right to appeal orders arising from investigations to the Appellate Authority under Section 107, with further recourse to tribunals and courts. Additionally, CBIC guidelines mandate that investigations by DGGI be limited to complex, multi-jurisdictional cases to prevent harassment, with prior approval required for initiating probes in certain scenarios. Limitations on DGGI's investigative authorities include resolution of jurisdiction overlaps through CBIC directives, which designate DGGI for intelligence-led probes spanning multiple commissionerates while referring routine cases to jurisdictional GST formations. DGGI lacks direct adjudication powers; findings from investigations are forwarded to the appropriate GST commissioners for issuing show cause notices, assessments, or recovery proceedings, ensuring separation of investigation from adjudication. These constraints promote coordinated enforcement without duplication.

Notable Cases and Impact

The Directorate General of GST Intelligence (DGGI) has been instrumental in dismantling major GST evasion networks through targeted operations. In November 2025, the DGGI's unit busted a ₹19 fake billing involving scrap trader Sheikh Yusuf Abdul Gafur, who allegedly generated bogus transactions worth ₹125 under the guise of scrap dealings to claim fraudulent (). Similarly, in the same month, the zonal unit arrested Mumbai-based Nilesh Yogesh Jagiwala, a key figure in a ₹325 involving shell companies that issued fake invoices and staged transactions to pass on illicit to genuine businesses; prior arrests included a woman associate, highlighting the syndicate's pan-India operations with businessmen and professionals. These cases underscore DGGI's investigative authorities under Section 67 of the CGST Act, enabling searches and arrests that disrupt evasion chains. Since its evolution post-2017, DGGI has played a pivotal role in uncovering pan-India fake invoice rackets, detecting evasion amounting to over ₹2.01 lakh crore in FY 2023-24 alone across sectors like online gaming and banking, financial services, and insurance (BFSI). Central GST field officers detected total GST evasion of ₹7.08 lakh crore over five financial years ending FY 2024-25 (FY 2020-21 to FY 2024-25), including ₹1.79 lakh crore in input tax credit (ITC)-related frauds, contributing to voluntary payments of ₹21,972 crore in FY 2023-24 through pre-emptive intelligence and enforcement. This has fortified revenue protection, with DGGI's efforts reducing systemic leakages in invoice-based evasions that proliferated in the regime's early years. DGGI's high-profile raids have created deterrence against organized , boosting and investor confidence by targeting big-ticket evasions. It has also influenced by recommending measures to the Council, such as enhanced information sharing with foreign governments and website blocking to address evasion trends in OIDAR services and digital platforms. Addressing evolving challenges, DGGI has tackled app-based frauds and offshore betting evasions, including probes into over 700 entities ahead of IPL 2025, resulting in the blocking of 357 illegal websites and freezing of nearly ₹126 across 2,400 bank accounts to curb from non-compliant online gaming. These actions highlight DGGI's adaptation to digital evasion tactics, ensuring sustained integrity.