GST officers are using data analytic and artificial intelligence (AI) tools like Business Intelligence and Fraud Analytics to identify risky taxpayers suspected of passing or availing fake input tax credits.
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said a total of 14,597 cases of Goods and Services Tax (GST) evasion have been registered by central tax officers during April-December 2023.
A maximum number of such cases was registered in Maharashtra (2,716), followed by Gujarat (2,589), Haryana (1,123) and West Bengal (1,098).
“Various data analytic and artificial intelligence tools such as NETRA (Networking Exploration Tools for Revenue Augmentation), BIFA (Business Intelligence and Fraud Analytics) & ADVAIT (Advanced Analytics in Indirect Taxation) are being used to identify risky taxpayers, suspected of passing or availing fake input tax credit, including in the State of Andhra Pradesh,” Chaudhary said.
GST intelligence officers have detected fake input tax credit (ITC) cases worth Rs 18,000 crore in April-December of the current fiscal and arrested 98 fraudsters/ masterminds.
Based on the feedback received from the field formations, these tools are updated/modified from time to time, he added.
Chaudhary said the GST registration process has robust checks in the form of physical verification of premises and Aadhar authentication.
The said checks had enabled in early detection of fraudulent registrations and also curbed fraudulent registrations to a great extent.
In Gujarat, Andhra Pradesh and Puducherry a pilot on risk-based biometric-based Aadhaar authentication is being carried out for registration applications.