State GST Dept Issues Systematic Guidelines on Risk Factors & Data Analytics

Upon the purpose of how the tax council is applying data analytics and technology, as focused from the rules that have been provided towards the investigation of GST returns in Kerala.

Commissioner of the state GST has ordered to the tax council the risks involved and the hardships along with the process that was explained. The order specified the risk factors along with that it explains the process of working the system and how it shows the risks factors and what is the method of scrutiny once the data analytics draws the difference in filing the taxes.

“This is an important update, as the guidelines demonstrate the direction/procedure being followed by authorities while issuing notices, mentioned a tax expert.”

The order held that there are some of the scrutinies in the former times that might not have followed the process.

“Specific instances have come to the notice wherein proper procedures have apparently not been followed during the scrutiny of returns and thenceforth actions. Hence in order to ensure uniformity in the scrutiny of returns across the field formations and also to prioritise and dispose of the cases initiated at the assessment vertical the following instructions/guidelines shall be adhered to, the guidelines said.”

The rules tell that how the platform reveals bout the hurdles for the specific problems and how the GST council is needed to find out about the case prior to providing the notices.

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The detailed rules specified that the risk level on the ITC is taken through the firms. GST platform permits the firms to deduct their future tax liability with respect to the GST furnished through them on the raw materials obtained via suppliers. The deduction sometimes comes under the ITC.

“While aforesaid Guidelines have been issued in Kerala, other States are also likely to adopt similar guidelines/ procedure to track anomalies in different filings and issue notices,”