To detect tax evasion and fraud, GST officers use radio frequency data
GST officials are now comparing details provided at the time of producing e-way bills for goods movement with the actual movement of vehicles captured at toll plazas to identify vehicles that pose a danger of revenue leakage.
GST officials are now comparing details provided at the time of producing e-way bills for goods movement with the actual movement of vehicles captured at toll plazas to identify vehicles that pose a danger of revenue leakage. E-way invoices are required when a GST-registered individual transports products worth more than ₹50,000 within and across states.
The Central Board of Indirect Taxes and Customs (CBIC) said in a communication to field officers on Monday that officials had discovered a racket of existing unregistered enterprises transporting iron scraps under the invoicing of fraudulent and non-existent firms. The tax office said it also recovered phoney invoices transmitting bogus tax credits worth roughly ₹14.5 crore. This was based on the Directorate General of GST Intelligence’s examination of dangerous automobiles (DGGI)
In January of this year, e-way bills were merged with radio frequency identification (RFID) tags. This means that information about projected goods movement, such as item classification, destination, and vehicle information provided at the time of e-way bill production, is loaded into these commercial vehicle radio frequency tags. This helps in the detection of objects between the details of vehicle movement described in the e-way bill and their physical movement.
“Data analytics helps authorities identify instances of e-way bills that do not result in goods transportation as well as goods movement without e-way bills. This significantly improves the administration’s ability to focus on non-compliant behaviour while not causing inconvenience to honest taxpayers,”Said by one Expert.
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Although border check posts were eliminated throughout states with the introduction of GST four years ago, the development represents a key milestone in tax administration because it lends greater accuracy to government attempts to combat evasion. Officials tend to focus on situations detected in their IT system rather than accusing all taxpayers, which aids real goods transporters.
One of the reasons that contributed to higher GST revenue collections in recent months was the increased use of technology and data analytics in tax administration. Minister of state for finance and corporate affairs Anurag Thakur said on July 1, the fourth anniversary of the implementation of GST, that the CBIC has been on a crackdown on tax evasion, which has resulted in the detection of fake input tax credits and tax evasion totaling over Rs 29,000 crore since November. E-invoicing, or real-time reporting of business-to-business transactions in an authorised gateway, is another important new initiative aimed at boosting tax compliance. Since April, enterprises with yearly revenues of less than 50 crore have been eligible, down from 100 crore previously.
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