Automated GST Scrutiny System to Boost Tax Collection, Says India’s Finance Minister
Image source: India TV
Finance Minister Nirmala Sitharaman has requested the Central Board of Indirect Taxes and Customs (CBIC) to implement an automated Goods and Services Tax (GST) scrutiny system by next week. The system will help streamline the process of identifying tax evaders and will increase transparency in the system.
The GST was introduced in India in 2017, replacing multiple indirect taxes levied by the central and state governments. The tax is levied on the supply of goods and services and has helped simplify the tax structure in the country. However, tax evasion continues to be a problem, and the government has been taking steps to curb it.
The automated GST scrutiny system will use data analytics and artificial intelligence to identify discrepancies in returns filed by taxpayers. It will also flag cases of input tax credit (ITC) availed without the receipt of goods or services, and cases of under-reporting of turnover.
The system will not only help identify tax evaders but also reduce the burden of compliance for honest taxpayers. The automated system will also help reduce the time taken to scrutinize returns, thereby improving the efficiency of the system.
The Finance Minister has emphasized the importance of the system in enhancing tax collections and ensuring that the benefits of the GST are realized by all stakeholders. The introduction of the automated GST scrutiny system is part of the government’s efforts to make the tax system more efficient, transparent, and taxpayer-friendly.
Re-reported from the story originally published in India TV
