CBIC to deploy Technology to Address GST Data Discrepancies

In an effort to address the issue of data discrepancies in tax returns filed, the Central Board of Indirect Taxes and Customs (CBIC) intends to use technology to rectify mismatches and ease disputes.

According to CBIC’s analysis, the majority of tax-related disputes were caused by show-cause notices for data discrepancies such as short payment of GST, excess availment of input tax credit (ITC), and non-payment of GST on taxable services under the reverse charge mechanism (RCM).

To address these data discrepancies, the GST Network is creating a new register to solve RCM problems. CBIC will develop a record-keeping system that will reflect any reverse charges that must be paid, as well as functionality to prevent taxpayers from receiving ITC beyond what is applicable to them.

Apart from this, in an ongoing all-India drive against fake registration of companies under GST set up to swindle the exchequer, tax officials have found around 10,700 fake GST registrations, causing Rs.10,179 crore in evasion, a top official said.