GST officers tap data analytics to prevent tax evasion across supply chain

Goods and Services Tax (GST) officers are using data analytics to ascertain if the entire supply chain in a particular sector is paying adequate GST, or if there is a missing link, an official has said. With GST evasion of over Rs 1 lakh crore detected in the last financial year ended March 31, the Directorate General of GST Intelligence (DGGI) has stepped up efforts to catch evasion at the initial stage itself so that compliance improves. 

“We are using end-to-end analytics for a sector and gap analysis of the taxes paid in a supply chain to ascertain if the entire value chain is paying adequate GST or if there is a missing link,” the official has told the PTI. 

The data analysis includes comparisons of the tax payment profile of a particular sector vis-a-vis the erstwhile excise and service tax regime. 

“Now that GST system has stabilised, the effort is to further streamline it. We want to ascertain if all the sectors which are covered under GST are paying their due share of taxes,” an official has said. 

After the analysis, if the department finds that some changes are required in law or tariffs to check evasion by increasing compliance, then it will be presented before the GST Council for approval, the official reveals. 

If a sub-part of any sector is not paying taxes in the value chain and there is a case of evasion, enforcement action can be taken, the official adds. 

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