Data analysis to improve compliance: GSTN

GSTN CEO Prakash Kumar said they are already doing simple analytics by matching GSTR-3B and GSTR-1 returns, based on which tax officials are sending notices to taxpayers under GST.

gstn, goods and services tax network, gst tax network, data analysis, indian express

The data analytics can be done on how same kind of taxpayers are behaving and also on circular trade, transactions only happening between a small group of people.

Listing its priorities for next six months, the Goods and Services Tax Network (GSTN) Friday said it will focus on development of new return filing system, improving the user interface and business intelligence and analytics. GSTN CEO Prakash Kumar said they are already doing simple analytics by matching GSTR-3B and GSTR-1 returns, based on which tax officials are sending notices to taxpayers under GST.

“We have analysed what the taxpayers have shown as liability in GSTR-3B and GSTR-1. We noticed there were some differences. This is one kind of analytics. Similarly we have GSTR-2A, what is accruing to him as deemed purchase based on his supplies and input tax credit and what he has taken. The third is related to what IGST was paid on import and what was claimed in GSTR-3B,” Kumar said. He further said: “Now that we have centralised data and all data is at one place, it is much easier to compare.”

He said the potential of data analytics is huge as it helps not only to improve compliance but also helps in policy making.

The data analytics can be done on how same kind of taxpayers are behaving and also on circular trade, transactions only happening between a small group of people. “Once you have data at one place, there are techniques and we have started analysing. We will be developing tools for our tax officers so that they can do it themselves,” Kumar said.

Analysis can be on what is reported in E-way bill and what’s reported in GSTR-1. “Today analysis of E-way bill data will tell you which are the hub-and-spoke of a country for every commodity. Which commodity goes where and from where it is distributed,” Kumar said.

On the change in ownership of GSTN to a private company, GSTN Chairman Ajay Bhushan Pandey said the company has been discharging the responsibility of a government company even though currently 51 per cent of its shares are being held by private institutions. GSTN has been under CAG audit and will continue to be audited by the official auditor, Pandey said.