Govt keeps tabs on GST evasion
Officials using data analytics to analyse sector-specific supply chain for identifying missing link
Gap Analysis
♦ Comparisons of tax payment profile of a particular sector
♦ Govt keen on streamlining GST system
♦ Data analytics helps in checking GST evasion at mfg stage itself
♦ GST evasion doubled to Rs1.01 lakh cr in FY23
♦ DGGI recovered Rs21,000 cr
New Delhi: 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 said. With GST evasion of over Rs1 lakh crore detected in the last fiscal 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 told 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 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 would be presented before the Council for approval. If a sub-part of any sector is not paying taxes in the value chain and there is a case of evasion, enforcement action could be taken, the official said.
“Data analytics is a time taking process, but this is required to check GST evasion at the manufacturing stage itself. It will help increase revenue collection, while ensuring that compliance improves,” the official added.
AMRG & Associates Senior Partner Rajat Mohan said DGGI has been empowered with numerous technology tools to identify high-risk sectors that are not capturing the true value addition in the entire supply chain leading to pilferage of taxes.
GST evasion detection by tax officers almost doubled year-on-year to over Rs1.01 lakh crore in 2022-23 fiscal. A recovery of Rs21,000 crore was made by the officers of the DGGI. The total number of Goods and Services Tax (GST) evasion cases too had gone up with about 14,000 cases detected in 2022-23, up from 12,574 cases in 2021-22 and 12,596 cases in 2020-21.
