After analysis, if the department feels that some changes are required in the law or tariff so as to check evasion by enhancing compliance, the same will be placed before the Council for approval.
The data analysis compares the tax payment profile of a particular sector with the prevailing excise and service tax regime.
An official said GST officials are using data analytics to find out whether the entire supply chain in a particular sector is paying enough GST or whether there is a missing link.
With GST evasion of over Rs 1 lakh crore detected in the last financial year ended March 31, the Directorate General of GST Intelligence (DGGI) has stepped up efforts to detect evasion at an early stage to improve compliance .
“We are using ‘end-to-end’ analytics for a sector and ‘gap analysis’ of tax paid in the supply chain to ascertain whether the entire value chain is paying enough GST,” the official said. or some link is missing. told PTI.
The data analysis compares the tax payment profile of a particular sector with the prevailing excise and service tax regime.
“Now that the GST system has stabilised, efforts are being made to make it more efficient. We want to find out whether all the sectors under GST are paying their share of taxes, said an official.
After analysis, if the department feels that some changes are required in the law or tariff so as to check evasion by enhancing compliance, the same will be placed before the Council for approval.
The official said that if a sub-section of a sector is not paying taxes in the value chain and there is a case of tax evasion, enforcement action can be taken.
“Data analytics is a time-consuming process, but necessary to check GST evasion at the manufacturing stage itself. This will help increase revenue collection while ensuring that compliance improves.
Rajat Mohan, Senior Partner, AMRG & Associates, said DGGI has been empowered with several technology tools to identify high-risk areas that are not adding true value across the entire supply chain leading to evasion of taxes.
Detection of GST evasion by tax authorities almost doubled year-on-year to over Rs 1.01 lakh crore in FY 2022-23. DGGI officials recovered Rs 21,000 crore.
The total number of Goods and Services Tax (GST) evasion cases also increased with nearly 14,000 cases in 2022-23, up from 12,574 cases in 2021-22 and 12,596 cases in 2020-21.
The modus operandi adopted by the fraudsters includes short payment of tax by undervaluation of taxable goods and services, wrongful availment of exemption notifications, wrongful availment of input tax credit, non-payment of tax on supply of taxable goods and services (secret evictions), and fraudulent availing of input tax credit on the basis of invoices from bogus firms.
In a reply to the Lok Sabha last month, the Finance Ministry said that a total GST evasion of Rs 3.08 lakh crore was detected between July 2017 and February 2023, of which over Rs 1.03 lakh crore was recovered. GST officials arrested 1,402 people for tax evasion in the last five and a half years till February 2023.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
