GST Returns scrutiny via using Advanced Analytics in Indirect Taxation system
- Company owners will need to be extra cautious while filing GST returns because the automated GST scrutiny system is going to use advanced artificial intelligence and data analytics to check discrepancy.
- The new system, which is due to be live in the coming days, will correlate data from a taxpayer's different GST filings to guarantee there are no anomalies.
- In a GST meeting on April 29 2023, Finance Minister Nirmala Sitharaman encouraged the CBIC to begin an automated GST return scrutiny as soon as possible.
- It is also possible that data from other sources, such as bank accounts, payments, and invoices, will be used to check for discrepancies in the GST return.
- According to reports, the new method would be similar to the income tax department's computer assisted scrutiny selection (CASS), in which an automated notice arrives based on specific factors. An Automated scrutiny of GST Returns notice will be sent if there is a difference in GST returns. In the event of real errors, taxpayers would be provided the option to correct their returns.
- The modification is part of the government's attempt to widen the tax base and increase compliance. According to experts, the Automated scrutiny of GST Returns system is expected to result in the issue of more notices.
- “The Automated scrutiny of GST Returns will be similar to that used for income tax. It will aid the government in combating tax evasion, boosting compliance, and raising revenue. However, once the system is automated, registered GST taxpayers will have to be more cautious when filing returns, and more scrutiny notices may be issued."
- The GST department plans on using more data analytics to improve compliance, which will include this. The utilisation of data analytics was a primary emphasis area in a recent national level coordination meeting of Central and state tax officials to decrease tax evasion. New functions have been added to the Advanced Analytics in Indirect Taxation system (ADVAIT system), allowing for a more thorough review of revenue and trends in export and import.
