In a significant move to address the growing issue of data discrepancies in tax return filings, the CBIC is set to introduce advanced technological solutions to resolve mismatches and reduce related disputes.
A recent analysis by CBIC revealed that a majority of tax disputes arise from show-cause notices linked to discrepancies such as short payment of GST, excessive availment of ITC and non-payment of GST on taxable services under the RCM.
In response to such challenges, the GST Network (GSTN) is developing specialized register to address challenges related to RCM. The system will keep records of all the reverse charges payable in a transparent manner to minimize likelihood of errors. Furthermore, CBIC will introduce new mechanisms to prevent taxpayers from claiming ITC beyond what is legitimately applicable.
It is believed that the implementation of these solutions will help to improve efficiency of tax compliance or decrease of number of disputes and increase of accuracy of tax. The CBIC remains innovative in improving the functioning of the GST system and the taxpayers are encouraged to stay updated.
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