Tax officials have been directed to augment their inspection of tax evasion through the help of Artificial Intelligence and Data Analytics in order to stop the leakages in revenue collection. Their goal is to make a targeted approach to counter the leakages. They want to ensure the process of red-flagging the tax evaders thereby making calculated steps to avoid harassment or overreach to genuine taxpayers.
The Revenue Secretary, Ajay Bhushan Pandey, has called upon the tax officials and tax commissioners to participate in a brainstorming session to discuss ways to streamline GST system and tackle the cases of tax evasion and fraud.
The discussion will include assessing the wider use of data analytics in the process of enforcement. The Government has notified changes to GST Rules to prevent frauds and fake invoicing besides setting up of grievance cells to ensure that overall tax base increases.
Earlier there has been a decrease in the input tax credit from 20% to 10%
Such steps have been taken earlier also in order to take cognizance of the grievances. Central Board of Indirect Taxes and Customs have created the Grievance Redressal Committees at zonal and state levels. Tax officials have been directed to identify cases of suppression of personal income, wilful tax evasion, fake invoices or inflated or fake e waybills.
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Those attending the session will include the tax officials from the state as well as centre, senior officials from different tax bodies along with officers from the enforcement wing.
Centr’s fiscal position is under stress due to loss of revenue collection of Rs 1.45 lakh crore along with the recent Rs 35000 crore being compensated to the states. This has increased the stress on the Centre’s fiscal position.