Weekly Current Affairs

GST platform to become analytics powerhouse [Economy]

  • The Goods and Services Tax Network, the information technology backbone that will implement the new indirect tax regime, will become a data analytics powerhouse in the months after the roll-out.
  • GSTN is a non-profit entity that is building the information technology backbone for the goods and services tax (GST).
  • It will store all details related to the relevant transactions. These analytics, based on data filed by millions of taxpayers who will migrate to the system, will help in plugging leakages, identifying economic trends and ensure more focused economic- policymaking.
  • The vendor would build programmes and analytical tools as per the data requirements of both central and state tax departments. The data generated could be on real-time basis, if not near real time.
  • In audit, tax authorities often found that the input tax credit was inflated,” the GSTN chairman said. The CAG also found that in five-six states 30-40 per cent input tax credit claims were either bogus or inflated. Now, the system will match the tax returns filed by the manufacturer and the supplier. Discrepancies will be flagged. The tax authorities can then go after the taxpayers.