GSTN Data contains Inconsistencies, Not Reliable: CAG [Read Report]

In a report submitted by the Comptroller and Auditor General of India (CAG) before the Parliament observed that the data provided by the Goods and Services Tax Network (GSTN) contains huge inconsistencies and the same is not reliable.

As per the report, an audit provided access to the GST returns data in February 2021, in GSTN’s premises, pertaining to the period from FY 2017-18 to FY 2019-20, as filed by taxpayers up to August 2021. An analysis was performed with a view to deriving an assurance on the quality of data captured.

“During analysis of pan-India data provided by GSTN, Audit noticed significant data inconsistencies between the taxable value and declared tax liability. Inconsistencies were also noticed between the CGST and SGST components of GST, and between ITC figures captured in GSTR-3B and GSTR-9 returns. Due to significant inconsistencies in the GST data, Audit could not establish the reliability of data, for the purpose of finding audit insights and trends in GST revenue, and assessing high risk areas such as tax liability and ITC mismatch at the pan-India level,” the report said.

Audit recommended that the Ministry should consider introducing appropriate validation controls (controls which prevent unreasonable data entries or alert the taxpayer to unreasonable data or both) supplemented by post-facto data analytics in respect of important data elements, where in data (such as tax amounts; taxable values; tax components, like CGST and SGST; validation of ITC and tax amounts, between the annual and monthly returns) is entered by the taxpayer. An effective review and follow up system needs to be developed at GSTN to review and address cases of data inconsistencies. In case of significant deviations, tax officers may be alerted to the inaccuracies and directed to take necessary action.

To Read the full text of the Report CLICK HERE

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