• Notification Date: 21-03-2023
• Notification No: N/A

GST Dept to Inspect ITRs and MCA Filings of Professionals and Businessmen to track Tax Evaders

To determine if the firms are appropriately discharging their Goods and Service Tax (GST) obligation and expanding the taxable base, the GST department will likely begin to analyse Income Tax Returns (ITRs) submitted by businesses and professionals as well as MCA filings. According to the sources, based on the data that is accessible with the Income Tax department, the officials will triangulate the data. If the study shows that the entities that should be paying taxes under the GST are not paying, they will issue a polite inquiry. 

Further, the analysis of data will emphasize those businesses that are not excluded from the GST mandate to register and file monthly or quarterly returns. The GST department will contact those entities at their registered place of business and ask them why they are not complying with the GST rules after identifying them. As of today, 1.38 crore firms and professionals are registered with the Goods and Services Tax (GST), which went into effect on July 1, 2017. Businesses in the manufacturing and service industries must register under the GST and file tax returns if their annual revenue exceeds Rs. 40 lakh and Rs. 20 lakhs, respectively. 

The official stated that to determine whether any GST avoidance is occurring, the data analysis wing will also examine the quarterly and annual data submitted by enterprises to the Ministry of Corporate Affairs. Around Rs 3.08 lakh crore in total tax evasion was discovered between July 2017 and February 2023, of which more than Rs 1.03 lakh crore was realised. In the last five and a half years, 1,402 people have been detained by the GST officials for tax evasion. 

The tax department has been using different advanced technologies to find the tax evasions. Recently, the Delhi Municipal Corporation informed that they are likely to use drones to take surveys on the taxpayers. The departments are more alert now to lock all the evaders.