Automated GST Return Scrutiny likely to roll out by Next Week

Businesses will have to be more cautious when filing returns since the automated GST scrutiny system is about to utilise advanced artificial intelligence and data analytics to identify inconsistencies.

The new system, which is due to be live in the coming days, will correlate data from a taxpayer’s different GST filings to guarantee there are no anomalies.

In a review meeting on April 29, Finance Minister Nirmala Sitharaman asked the Central Board of Indirect Taxes and Customs (CBIC) to implement automated GST return inspection by next week.

It is also possible that data from other sources, such as bank accounts, payments, and invoices, will be used to check for anomalies in the GST return.

According to reports, the new method would be similar to the income tax department’s computer assisted scrutiny selection (CASS), in which an automated notice is delivered depending on certain factors. An automatic inspection notice will be sent if there is a difference in GST returns. In the event of real errors, taxpayers would be offered the option to correct their returns.

The move is part of the government’s effort to broaden the tax base and boost compliance. According to experts, the automated return scrutiny method is expected to result in the issue of more notices.

The GST department intends to employ more data analytics to improve compliance, which will include this. The utilisation of data analytics was a primary emphasis area in a recent national level coordination meeting of Central and state tax officials to reduce tax evasion. New features have been added to the Advanced Analytics in Indirect Taxation (ADVAIT) system, allowing for a more in-depth examination of revenue and trends in export and import. It would also assess outliers in both customs and GST using advanced data science methods.