Govt. New Plan to Stop GST Evasion by Using Aadhaar Registration & AI

The government plans to have artificial intelligence (AI) as well as Aadhar enrolment to prepare the list of uncertain companies to examine the Goods and Services Tax (GST) theft. Thus there is a risk for such firms which will be stated as risky to track their activities as per the finance ministry.

A racket of illegal input tax credit (ITC) was caught along with other firms through the database assistance of unsafe exporters. The government plans to implement a similar mechanism to track the unspecific firms who claim GST refunds Get to know about official GST refund process under GST regime as finalized by the GST Council. We have included terms and conditions of all aspects without really handling the business said to Hindustan Times.

“It is surprising that many fake firms and shell companies have been created that generate fake invoices to claim GST refunds. It has become an independent business, which needs to be dealt with an iron hand. Recently we caught the owner of one such fake firm in Pune that made over Rs 50 crore illegally,”

The central government’s finances, which continue to look dull as of lower corporate tax and collection of Central GST, affected due to tax theft. According to the report of the fifteenth finance commission FFC, the government might lose ₹ 5 lakh crore tax revenue for the year counts up to 40% of the GST target due to the tax theft. As of July 2017, the tax authorities have received the theft of ₹ 70,206 crores as the authorities were introduced in January 2020. Although the tax council has managed to regain half of the amount i.e ₹ 34,591 crores.

In April to August 2020 the 1st five months of the ongoing financial year the financial shortage reflects ₹ 8.7 lakh crore, 109 % of the administration budget estimation i.e ₹ 7.96 lakh crore. Gross tax collection in the announced year was ₹ 5.04 lakh crore, barely 76 % of ₹ 6.6 lakh crore in the identical period the previous year.