GST officials have identified 14,597 cases of tax evasion during the period from April to December, according to information provided to the Lok Sabha by the government.
GST officials leverage data analytics and artificial intelligence tools such as Business Intelligence and Fraud Analytics to pinpoint high-risk taxpayers who are under suspicion for engaging in fraudulent activities related to claiming or availing fake input tax credits, as per information shared in Parliament on Monday.
In a written response to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary stated that central tax officers have registered a total of 14,597 cases of Goods and Services Tax (GST) evasion during the period from April to December 2023.
Maharashtra recorded the highest number of such cases with 2,716, followed by Gujarat with 2,589, Haryana with 1,123, and West Bengal with 1,098 cases.
“Several data analytic and artificial intelligence tools, such as NETRA (Networking Exploration Tools for Revenue Augmentation), BIFA (Business Intelligence and Fraud Analytics), and ADVAIT (Advanced Analytics in Indirect Taxation), are employed to detect potentially risky taxpayers engaging in the misuse of input tax credit, including cases in the State of Andhra Pradesh,” explained Chaudhary.
GST intelligence officers have unearthed fraudulent input tax credit (ITC) cases amounting to Rs 18,000 crore during the period of April to December in the current fiscal year. As a result of these findings, 98 individuals involved in fraudulent activities, including masterminds, have been apprehended.
In response to inputs from field formations, these tools undergo periodic updates and modifications, he further stated.
Chaudhary highlighted that the GST registration procedure incorporates robust measures, including physical premises verification and Aadhar authentication.
These checks have facilitated the early identification of fraudulent registrations and significantly curtailed such activities.
A trial of risk-based biometric Aadhaar authentication is currently underway for registration applications in Gujarat, Andhra Pradesh, and Puducherry.