A file photo of Prakash Kumar, CEO, GSTN. Photo: Pradeep Gaur/Mint
A file photo of Prakash Kumar, CEO, GSTN. Photo: Pradeep Gaur/Mint

GSTN using data analytics to detect tax evasion, under-reporting of sales

GSTN is using data analytics to look at industry outliers who may be under-reporting sales and also to target transactions between related parties specifically shown to avoid paying taxes

New Delhi: The Goods and Services Tax Network (GSTN) is using data analytics to look at industry outliers who may be under-reporting sales and also to target transactions between related parties specifically shown to avoid paying taxes.

The information technology network has also started matching the e-way bill data with the tax returns, said Prakash Kumar, chief executive officer of GSTN.

“Since all the processes are online, we have centralised data that is easy to analyse and search for discrepancies," he said at a press conference, ahead of GST completing a year.

GSTN is also looking at related parties, who may be just reporting all businesses among themselves.

Ajay Bhushan Pandey, chairman of GSTN, said it is time to leverage the large amount of data generated over the past one year to check for tax evasion.

GSTN has floated a draft request of a proposal for a fraud analytics provider as it looks to detect complex fraud patterns.

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