New Data Analytics Tool Detects Tax Fraud
The Indian government has detected ₹11,000 crore (~$1.5 billion) in alleged tax evasion by 24 large importers. The fraud was detected using a new data analytics tool called the Advanced Analytics in Indirect Taxation (ADVIT).
ADVIT is a powerful tool that can analyze large amounts of data to identify patterns and trends that might indicate tax fraud. In this case, ADVIT was able to identify a number of suspicious transactions that led to the detection of the fraud.
The companies involved in the fraud are largely from the metal, pharmaceutical, gems and jewelry, and textiles sectors. They are accused of wrongly availing input tax credit and underpaying taxes.
The government is now seeking to further strengthen ADVIT to capture new sets of data about importers and exporters. The tool is also being used to track the movement of goods across the country and identify potential smuggling activities.
The government's crackdown on tax evasion is a welcome development. It is important to ensure that everyone pays their fair share of taxes so that the government can provide essential services to the people.
The government is also planning to launch a two-month intensive drive from May 16 to detect fake invoices, fake GST registration, and incorrect input tax credit.
The drive will be conducted by the Directorate General of GST Intelligence (DGGI) and the Directorate of Revenue Intelligence (DRI). Officials will be visiting businesses across the country to verify their GST registrations and to check for any irregularities.
The government has warned that anyone found guilty of tax evasion will face severe penalties. These penalties can include imprisonment, fines, and the cancellation of GST registration.
The government's crackdown on tax evasion is a serious matter. It is important for businesses to comply with the law and to pay their taxes on time. By doing so, they can help to ensure that the government has the resources it needs to provide essential services to the people.