Data exchange, analytics can help stop tax evasion
Context: The Goods and Services Tax Network and the Central Board of Direct Taxes will soon join hands to share data to stop tax evasion, GST Network Chairman Navin Kumar said Key points:
- Vendors from whom small businessmen buy products or services are too small to be in GST, but for businesses to get input tax credits, the vendors must be registered.
- The GST Network is going to be such a vast repository of corporate tax data.
- Before GST even started, in Maharashtra, the State government obtained income tax and matched it with their VAT data and discovered a tax evasion of the order of Rs 300 crore in a month.
- Provisional IDs were created for all 86 lakh who were earlier registered on other tax networks. Of the 70.5 lakh who have migrated, 41 lakh of the people who have activated their accounts have completed their applications also.
- About 35,000-40,000 new people are registering every day.
The Central Board of Direct Taxes in India:
- Direct taxation in India is overseen by the Central Board of Direct Taxes (CBDT). The CBDT is a part of the Department of Revenue in the Ministry of Finance and is responsible for the administration of the direct tax laws. It also provides inputs and suggestions for policy and planning of the direct taxes in India.