Cracking Down on Tax Evasion: The Role of Digital Payments and Merchant Monitoring

• The growth of digital payments has led to increased scrutiny of online merchants for tax evasion
• DGGI is collaborating with startups, payment aggregators, and gateways to ensure accurate representation of products and proper GST invoices
• Small merchants register for lower GST rates but sell items taxed at higher rates
• Authorities aim to crack down on tax evasion practices
• RBI urges payment aggregators to monitor clients more closely
• Common tactic involves switching from lower taxed services to higher taxed services
• Payment aggregators lack continuous monitoring of merchants
• RBI draft guidelines emphasize ongoing merchant monitoring
• Industry insiders track non-compliant merchants using various methods
• Platforms use AI tools to verify products being sold by merchants

Source: a2ztaxcorp.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.

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