“So far, we were able to identify anomalies of thousands of crores of tax leakage, and the government is on it,” a source at the indirect tax department told ET.
The system collects data of traders at multiple layers of compliance such as GSTR1, GSTR3B and drawing information like value of product, tax rate, tax amount, sales and purchase details. Tax leakage is considered to be one of the key concerns for the GST Council. Analysts, GST Suvidha Providers (GSP) said both the government and businesses see “inconsistency” in data collected during compliance.
“From tax collection perspective, one of the concerning area is tax evasion (leakage or frauds). In order to detect such cases early, data analytics is planned to be used. Accordingly, we have released an RFP for selection of a partner. So we will be performing pure analytics on whatever data is collected, where we will be able to identify anomalies (if any) in the data sets and help tax officials initiate appropriate actions,” said Anand Pande, CISO, GSTN.
The GSTN fraud analytics project aims to leverage the power of big data and advanced analytics which will enable GSTN to extract better insights from data and enhance system for reducing fraud evasion.
The fraud analytics solution is “to run on near real time data and help key stakeholders at the Centre, states and UTs to get quick insights into data through powerful user interface and visualisation”, the RFP details. The solution is also envisaged to perform predictive search, create network between entities, etc, to detect and prevent frauds thereby providing the most relevant results.
Data analytics has significantly improved accountability on both the government and businesses sides, said analysts. For instance, both numbers and texts are mined to understand why a disparity persists between consumption of power and turnover of a trader.
“We are getting more detailed queries and the companies find it time consuming to get those compliance information. For example, if for a particular company the power consumption is going up but the turnover isn’t, that means there should be further investigation,” said N Balaji, Partner, Advisory Services – Analytics, EY.