Advanced Analytics in Indirect Taxation (ADVAIT) data has revealed that 24 large importers have evaded ₹11,000 crore in Integrated Goods and Services Tax (IGST). ADVAIT is a data analytics tool that is used by the Indian government to track and monitor indirect taxes.
The tool uses artificial intelligence and machine learning to identify patterns and anomalies in tax data.
The evasion of IGST is a serious offense that can have a significant impact on the Indian economy.
The government is taking steps to crack down on tax evasion, and the use of ADVAIT is one of the tools that is being used to achieve this goal.
Let’s delve deep into this latest news.
Unveiling the ₹11,000 Crore IGST Scandal: Exposing Major Importers and Boosting Tax Analytics
The DGGI and DRI found that 24 major importers avoided paying ₹11,000 crore in IGST.
Seven importers in Mumbai, Kolkata, and Chennai have received notices.
More importers will receive notices soon.
The evading companies are mainly from steel, pharmaceuticals, gems and jewellery, and textiles sectors. ADVAIT, which utilizes advanced analytics in indirect taxation, identified the tax evasion and labeled 340 importers as high risk.
The government plans to enhance ADVAIT to gather additional data on exporters and importers.
Government’s Mission to Ensure Fair Taxation in Imports and Exports
The government is now looking to strengthen the system to capture more information about importers and exporters.
This will help the government to better track and monitor trade flows, and to ensure that all taxes are paid correctly.
To do this, the government is introducing a number of changes to the ADVAIT system.
These changes include:
- A comparison report between tax paid and tax payable populated in the GST Return Filing of GSTR-9 Form by taxpayers under a selected jurisdiction for a financial year.
This will help the government to identify any discrepancies in payments, and to take appropriate action.
Understand about GSTR-9 at: GST Annual Return Filing- How to File GSTR- 9, Types & Eligibility
- Visibility on place of supply, amount of tax, and ledger utilized, all at one place.
This will give the government a holistic view of payments made by taxpayers, and will help them to identify any patterns or trends.
Other measures to curb evasion of GST
The government is also encouraging importers and exporters to take certain measures to ensure that they are compliant with the new ADVAIT system.
These measures include:
Obtaining an IEC Code Registration from the Directorate General of Foreign Trade (DGFT).
Consulting with a chartered accountant (CA) to ensure that they are filing the correct information in the ADVAIT.
Having an AD Code Registration with the Customs Department.
In short, by taking these measures, importers and exporters can help the government to strengthen the ADVAIT system and to ensure that all taxes are paid correctly.
It will benefit everyone involved in trade, and will help to create a more transparent and efficient trade environment.
If you wish to avail more guidance on how to take more measures or take the right registrations and licenses for your import business, consult our experts for free.
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