Government will use business intelligence and analytics to detect and prevent cases of tax evasion, mismatching of invoices and also for creating a 360 degree profile of tax payers that will be used shared with tax authorities for enforcing compliance.
The government will use Business Intelligence and Analytics to improve the GST network and detect the cases of mismatch and tax evasion in its bid to make it more user-friendly while simultaneously improving the compliance and enforcement. Government is also working to develop a new return filing system and further improve the user interface of the new tax indirect tax regime that was implemented nationwide in July last year.
“Different scenarios of business intelligence have been identified on which work is going on such as persona based analysis, predictive analysis, fraud and anomaly detection, statistical scoring, 360 degree view of taxpayers, circular trading and network analysis,” minister of state for finance Shiv Pratap Shukla told the Rajya Sabha in response to a question.
Government will also use this analysis in increasing the enforcement and compliance of the nationwide goods and services tax which mandates uploading of two different invoices for every sale and purchase made by the GST registered users.
The government said the GST Network has started sharing this information with tax authorities. “It’s very useful thing as under the GST no officer is involvement in the assessment process, assessment is being done by the technology. Officers only have a role in the case of audits,” SD Mazumdar, former chairman of central board of excise and customs (CBEC), the nodal body for implementing GST in the country which was later renamed as CBIC, told FE Online.
Business intelligence and analytics will be used in detecting the mismatch between the figures reported in GST-1 and GSTR-3B forms, mismatch between figures reported in GSTR-3B and the figures computed by the GSTN system in GSTR-2A forms.
“Data provides the basis on which intelligence can be developed,” added Mr. Mazumdar who has also written several books on the goods and services tax. This sophisticated technology will also be used in identifying those tax payers who have generated e-way bills but have not filed tax returns.