In a recent disclosure to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary revealed the proactive measures undertaken by GST officers to curb tax evasion. Utilizing sophisticated data analytic and artificial intelligence (AI) tools such as Business Intelligence and Fraud Analytics (BIFA), officers are targeting risky taxpayers suspected of engaging in fraudulent activities, particularly related to fake input tax credits.
During the period of April to December 2023, central tax officers registered a staggering 14,597 cases of GST evasion, with Maharashtra, Gujarat, Haryana, and West Bengal emerging as the states with the highest number of cases. Highlighting the efficacy of these advanced tools, Chaudhary noted that GST intelligence officers have successfully identified fake input tax credit cases amounting to Rs 18,000 crore, leading to the arrest of 98 fraudsters and masterminds.
Key tools such as NETRA, BIFA, and ADVAIT are instrumental in scrutinizing taxpayer data and identifying suspicious patterns indicative of tax fraud. These tools are regularly updated and refined based on feedback from field formations to enhance their effectiveness.
Moreover, Chaudhary emphasized the robustness of the GST registration process, which includes physical premises verification and Aadhar authentication. These measures have not only facilitated the early detection of fraudulent registrations but have also significantly mitigated the occurrence of such instances.
In a bid to further strengthen the registration process, pilot projects involving risk-based biometric Aadhaar authentication are underway in Gujarat, Andhra Pradesh, and Puducherry. This initiative aims to enhance the authentication process, thereby minimizing the potential for fraudulent registrations.
The concerted efforts of GST officers, coupled with the deployment of advanced technologies, underscore the government's commitment to combating tax evasion and ensuring compliance within the GST framework.
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