- The government is considering using AI and data analytics to combat GST evasion.
- They aim to prevent input tax credit fraud by using technology-driven risk profiling.
- Less than 30% of the ₹4 lakh crore of GST evasion has been recovered.
- AI and data analytics can help identify fraudulent claims, but the recovery process is slow and entangled in legal hurdles.
- There is a suggestion to proactively prevent fraud by holding suspicious claims for physical verification.
- GST evasion of ₹2,54,235 crore has been detected in the last three financial years, but only 27.7% has been recovered.
- MP Sushil Kumar Modi stated that ₹1.51 lakh crore worth of GST evasion has been detected in the current financial year.
- He proposed establishing a strong system of risk profiles and thorough physical scrutiny before granting registration.
- Finance Minister Nirmala Sitharaman assured that these points have been extensively discussed within the GST Council.
- The Council has taken measures to combat GST evasion and discussions have focused on risk profiling and tackling these issues.
Source: blog.saginfotech.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
