- Indian businesses in various sectors are receiving a large number of Show-Cause Notices (SCN) related to GST payment discrepancies.
- The Ministry of Finance’s tax investigators, the Directorate General of Goods and Services Tax Intelligence (DGGI), have adopted Artificial Intelligence (AI) to identify tax fraud.
- The use of AI has led to a surge in automated SCN issuance, with over 33,000 notices issued this year.
- The adoption of AI is focused on interpretive areas of the Central Goods and Services Tax Act and analysis of GST case law.
- Discrepancies in GST input tax credits, input tax exemptions, and GST output liabilities are being identified through analytics.
- The government of India has been using AI since May 2023 to identify fraudulent applications for input tax credits.
- The government is cracking down on tax evasion and non-registration for GST, with assessments being raised automatically through analytics.
- Manipulation or gaps in transactional data are automatically detected, and businesses are required to pay their tax liabilities.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
