gst: Firms more likely to face stiff queries from GST authorities

Companies have to gear up for some stiff queries from items and companies tax authorities, as they start scrutiny of returns for the primary time for the reason that new oblique tax regime was launched in 2017.

The Central Board of Oblique Taxes & Customs (CBIC) on Sunday rolled out computer-assisted automated number of returns beneath GST, which can be primarily based on sure risk-based parameters together with claims of enter tax credit score.

CBIC chairman Vivek Johri has written to discipline formations asking them to make sure scrutiny is carried out in a time-bound method. “Zonal chiefs could prefer to have the info examined and suitably taken up as per the prescribed SoP (customary working process) in a time-bound method,” Johri stated in a letter, dated April 4, seen by ET.

Johri stated the primary tranche of GSTINs (GST Identification Numbers) chosen for scrutiny, on the premise of threat parameters, had already been shared by the directorate basic of analytics and threat administration with discipline formations.

A authorities official stated the directorate basic would ship all of the monetary information and transaction particulars associated to the GSTINs which might be picked for the scrutiny case, in order that officers would take much less time.

“In case any discrepancies are discovered, a discover could also be issued by the division with a particular question and backed by paperwork, which can cut back the time taken within the scrutiny course of,” the official added.

A authorities official stated a number of the threat parameters included enter tax credit score claims not matching the GST return with earnings tax return and previous data of tax evasion.

“With a view in the direction of enhancing compliance by efficient and standardised scrutiny of GST returns, the board has been working in the direction of automating the scrutiny course of,” Johri wrote within the letter.

The official stated the federal government was working onerous to enhance compliance and scrutiny of returns can be a key focus to plug in any income leakages.

“Scrutiny of returns is our focus this yr and we can be utilizing expertise equivalent to AI to evaluate threat parameters in a greater approach,” the official stated, including that the division had information helpful and the method would go a good distance in bettering compliance.

Consultants stated companies should be additional cautious whereas filling their return as information analytics would make it simpler to detect evasion.

Companies should make sure the GST information are reconciled earlier than submission, MS Mani, companion, Deloitte India, stated.

The CBIC had final month issued the SoP to streamline the scrutiny of GST returns filed for the monetary years 2017-18 and 2018-19.

Final month witnessed an all-time excessive gross GST assortment at Rs 1,42,095 crore for the Centre and states collectively.

This was 15% increased than the GST income in the identical month final yr. The common month-to-month gross GST income in 2021-22 was Rs 1.23 lakh crore as in comparison with Rs 94,734 in 2020-21 and Rs 1.01 lakh crore in 2019-20.
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