Breaking: CBIC to introduce mandatory quarterly scrutiny of GST Returns

The government is considering tightening the rules on GST (Goods & Service Tax) leaks even more. CBIC (Central Board of Indirect Taxes & Customs) information and system-generated notifications are a new tool for preventing tax fraud.

Tax evasion worth Rs 52,000 crore was discovered between July 2017 and April 1, 2021.

As per CNBC News Report, Below changes will be introduced by Government to ensure the prevention of revenue leakage:

• The government is looking for further tightening GST Tax Leakage.
• CBIC Intelligence & System-generated alerts are a new tool to curb tax leakages.
• CBIC will soon introduce mandatory quarterly scrutiny of GST Returns. The GST Return scrutiny is aimed at better compliance & enhanced GST Collections.
• As per reports, Tax evasion worth Rs 52,000 crore was discovered between July 2017 and April 1, 2021.
• Fake Invoices are noted as the biggest tax evasion practice by taxpayers.
• CBIC will use biz intelligence & other enterprise data available to run quarterly scrutiny.
• Scrutiny involves risky GST Returns, which will be identified by system-generated red flags.

On March 23, the Central Board of Indirect Taxes & Customs issued a standard operating procedure for the scrutiny of GST returns for financial years 2017-18 and 2018-19, the first two years of the roll-out of the new taxation regime. The Central Board of Indirect Taxes & Customs would use business intelligence and other enterprise data available to run the quarterly scrutiny, the report said.