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Here are the list of ways people evade income tax and gst in India

1. Doing business in cash outside banking channel so that the regulatory authority and government can not track whether they actually surpass the income threshold 

2. Inappropriate reporting : over inflating of expenses or under reporting of income - fake invoices , agreements , and arrangements. For claiming ITC , fake bills are made in arrangement with known or related parties.

3. Making complicated structure of entities to launder black money using shell companies and tax havens , round tipping 

4. Manipulation of financial statements and window dressing where accounts is maintained in inappropriate manner which are in prejudice to the applicable law and reporting framework to showcase a misstated picture. The reporting entity generally bribes the auditing authority to hide their misconducts

5. Taking exemptions and expense claim under wrong means like donations, charging personal expenses under business heads, charging excess provisions, misclassification of income 

6. Manipulating valuation of assets to diminish the capital gain 

7. Non reporting of fringe benefits , considerations other than money as they are not easily trackable

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