GST Evasion: AI will be used to reveal GST Fraud; Suspicious GST registration will be Identify

Artificial intelligence is now being used to combat the rising fraud of obtaining input tax credit (ITC) through bogus GST registration.

Such suspected fraudulent companies were found by data analysis using AI. Beginning May 16, GST field officials will physically check these suspicious businesses and take action against merchants who obtain false GST registration.

Fake GST Registration Drive: GST officers to visit your shop soon: Be Ready

Following the exposure of such incidents around the country, a thorough review of GST figures is currently underway.

This special inquiry, which will span two months, will result in the cancellation of fake GST numbers. Traders who get fraudulent registration will face consequences. The special drive against false registration will take place across the country from May 16 to July 15.

How Artificial intelligence will be used?

After crores of government income were lost owing to fraudulent GST registration, the central and state governments are turning to artificial intelligence (AI).

The central government’s Business Intelligence and Fraud Analyst (BIFA) site, the e-way portal, and the Rajasthan government’s Business Intelligence Unit (BIU) would collaborate to detect such GST numbers that appear to be false.

Such cases will then be sent to the state. Field officers from the affected zone will arrive and conduct physical verification.

A programme is being launched to capture false and incorrect registrations from 16th May 2023.

Businessmen and professionals should plan ahead of time so as to convince field officers and dealers.

Safeguards

Keep all registration-related documentation handy. The business name, address, and GST registration number shall be displayed on a sign at the premises. Keep soft and hard copies of the past three months’ returns on hand for review. Dates on the sale bill and purchase paperwork should be current.