The GST department will start examining the Income tax returns furnished through the business and professionals, indeed MCA filing to find out if the entities are enough to release their GST liability and broaden the base of the assessee.
At present, there would be 1.38 cr enrolled businesses and professionals beneath the GST that was incorporated on the date 1st July 2017. Businesses would be needed to enrol themselves under the GST and furnished tax returns that secure turnover exceeding Rs 40 lakh and Rs 20 lakh, and are in the manufacturing and services sectors respectively.
As per the available information, data triangulation is been in process with the IT department. Under the examination of the entities that must be paid beneath the GST would not be performing the same, therefore a lenient inquiry will take place.
On such entities, the data investigation shall be under focus that does not get exempted and is needed to get enrolled beneath the GST and furnish the returns, either monthly or quarterly. Post finding the entities that do not follow the GST law, the GST department shall convey to them at their enrolled business place seeking them for the causes for non-compliance.
The officials mentioned that the data analysis wing shall find out via the quarterly and yearly information furnished through the businesses with MCA for revealing if there is any GST evasion that has taken place.
In the initial phase, the matching of the IT department and the GST data is there after that MCA filing matching would take place, and as per the officials, they shall initiate the matching of the income tax data.
There is no GST levied in various services sectors, along with the acknowledged educational institutions, agriculturists, electricity transmission or distribution companies, medical services by clinics
The total number of Goods and Services Tax (GST) evasion cases has surged in the same financial with 13,492 cases that have been fetched till February, up from 12,574 cases former financial and 12,596 cases in 2020-21, according to the released information by the Finance Ministry to Parliament.
Rs 3.08 lakh cr is the total evasion that has been fetched between July 2017 to February 2023 where Rs 1.03 lakh cr would have been realized. Nearly 1402 people would have been arrested by the GST authorities in order to evade taxes in the former five-and-a-half years.
Effective data analytics and artificial intelligence would be used by the tax council in order to find out and monitor the risky assessees and fetched the tax evasion; data sharing with the partner law enforcement agencies for more targeted interruptions and compulsory authentication for new GST registrations as per Aadhaar and centralized registrations suspension of registered persons who default in timely return filing.
Through the measures of the anti-evasion and rectified compliance, the monthly GST revenues would surpass Rs 1.4 lakh cr for 12 months consecutively. In the month of February, the GST revenues stood at Rs 1.49 lakh cr.
With effect from 1st July 2017, a worldwide GST which subsumed 17 local levies such as excise, service tax, and VAT and 13 cesses, was incorporated.
Tax experts mentioned that linking the GST numbers with the filings beneath the law of income tax and corporate laws shall emphasize the data points which are available for big data analytics. The same shall help in finding out the short tax payments.
The Government agencies would be rushing into converging diverse data sources in order to surge the compliance levels in all platforms.
