GST Alert to Businesses: Data Mismatches may Attract Notice

The automated scrutiny module for Goods and Services Tax (GST) returns rolled out by the Central Board of Indirect Taxes and Customs (CBIC) this week could lead to assessees receiving notices in cases where there are discrepancies between different types of tax returns.

The Automated Return Scrutiny Module for automated scrutiny of Goods and Services Tax (GST) Returns was released recently in the backend of the ACES-GST Application for Central Tax Officers.

correlates data from multiple returns to detect discrepancies. The Union Minister for Finance and Corporate Affairs had directed the CBIC to implement the module, which is now being used for the scrutiny of GST returns for the fiscal year 2019-20.

The system enables tax officers to use data analytics and identified risks to scrutinize Centre Administered Taxpayers' GST returns, allowing them to interact with taxpayers via the GSTN Common Portal to resolve any discrepancies. This system can issue an order of acceptance in FORM ASMT-12, a show cause notice, or initiate an audit/investigation to ensure compliance.

The Finance Minister had asked the CBIC to conduct a comprehensive root cause analysis of fraud cases and provide technology-based solutions to prevent future occurrences. The new returns scrutiny system aims to enhance tax compliance, reduce manual intervention, and increase the efficiency of tax administration. Additionally, the FM suggested organizing interactions with members of trade and industry in the GST ecosystem to improve taxpayer services continually.

The purpose of this module is to enable tax officers to scrutinize the GST returns of Centre Administered Taxpayers based on data analytics and identified risks. The module provides tax officers with a workflow to interact with taxpayers through the GSTN Common Portal, communicating discrepancies under FORM ASMT-10, and receiving the taxpayer's reply in FORM ASMT-11.

It also allows taking subsequent action in the form of either issuing an order of acceptance in FORM ASMT-12, as mentioned earlier, issuing a show cause notice, or initiating an audit/investigation. The Automated Return Scrutiny Module is currently being implemented for the scrutiny of GST returns for the fiscal year 2019-20, with the necessary data already made available on officers' dashboards.

The new returns scrutiny system is expected to generate notices very soon for taxpayers based on correlated data from various GST returns to identify any mismatches. 

The new automated GST Returns Scrutiny System automates the process of scrutinizing GST returns and generates alerts in cases of non-compliance. This technology-based solution aims to enhance tax compliance, reduce manual intervention, and increase the efficiency of tax administration.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates