GST evaders set to face stricter scans
NEW DELHI: Goods and services tax (GST) authorities are going to seek bank account details of businesses to tally with their filings, apart from initiating other measures, as part of fresh efforts to tighten the noose around evaders or those misusing and gaming the system.
The revenue department will meet officials from central and state GST wings as well as the Financial Intelligence Unit (FIU) and the Central Board of Direct Taxes next. The idea is to improve upon the red flags, which have helped the government improve compliance, resulting in filing of the GSTR-3B forms rising over 12% to 81 lakh returns by the December 20 deadline.
“Through e-way bills and FASTag, we will be able to check if goods have actually moved. Data from banks will help us check if genuine transactions have taken place or bogus details have been filled up in the returns,” an officer told TOI.
Weak compliance, which resulted in less than 70 lakh returns being filed by the deadline just over a year ago, was seen to be one of the reasons for leakages. But over the last few months, the revenue department has started detailed data analysis helping nab those who were under-reporting sales or were claiming excess refund of input tax credit.
The Central Board of Indirect Taxes and Customs (CBIC) along with GST Network, the agency providing the technology backbone, have devised what are commonly referred to as “red flags” that typically add up to around 40,000 a month in a tax base of over one crore. There are four-five parameters based on which alerts are sent out, with key focus being on the two GST returns that are filed.
So, there is a “nudge” and a push in case the data in GSTR-1 does not tally with GSTR-3B. If the gap is around Rs 1 lakh, text messages are automatically sent to the company’s directors or the proprietor of a firm, asking them to look into the difference. Officials said, in a lot of cases, this itself is enough to get the entity to “rectify” the problem, which may have been due to oversight.
Source- Times of India.
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