A group of state finance ministers (GoM) will likely suggest a mechanism to eliminate fake registrants and input tax credit (ITC) leakages.
In the virtual meeting on 21st October, 2021, it was decided to put in place mechanisms for better verification at the time of registration and eliminate fake registrants using artificial intelligence/machine learning-based analytics focused on network analysis and leads for fraud detection, an official from the Maharashtra government said.
Accordingly, GoM has decided to improve compliances and reporting of B2C supplies following the international experiences, the official said. As it was recognised that in order to improve analytics there is a need to take proper feedback from tax administrations to enable adequate learning by the systems in the place.
Further, the members of the GoM has also agreed to have suitable checks and balances to tackle menace of fake invoicing so as to regulate input tax credit outflows. As the Central tax authorities had booked about 8,000 cases involving fake ITC of over Rs 35,000 crore in FY21.
Besides above issues a brief presentation was made by GSTN and Infosys regarding the various recent upgradations made to the GST system and the way ahead.