29/05/2024
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**Note: Government to Integrate Data Repositories to Curb GST Evasion, Fraud**
**Date: 29.05.2024**
The Central Board of Indirect Taxes and Customs (CBIC) is set to merge its existing database of Directorate General (DG) Systems with the Goods and Services Tax Network (GSTN) to enhance its coverage of taxpayer activities and curb tax evasion. This initiative will see GSTN becoming the primary database starting the first week of June, as per a senior official's statement to the Financial Express.
Currently, the common GST Portal developed by GSTN serves as the "front-end" of the GST-IT ecosystem, while DG (Systems) functions as the "back-end," managing tax administration tasks such as refunds, investigations, and adjudications. From June onwards, GSTN will take over back-end functions as well, streamlining operations and improving the efficiency of tax administration.
The primary motivation behind this merger is to combat tax evasion more effectively. In FY24, the Directorate General of GST Intelligence (DGGI) identified over 6,074 cases of duty evasion amounting to over Rs 2.01 trillion, which represents approximately 10% of the total GST collection for FY24. Voluntary payments accounted for Rs 26,598 crore, contributing around 1.4% of the total GST collections for the fiscal year. In FY23, 4,872 cases of GST evasion were detected, involving Rs 1.01 trillion in evaded duty, with voluntary payments of Rs 20,713 crore.
The GSTN was established as a uniform IT interface between taxpayers, the Centre, and states. It is responsible for maintaining the common GST electronic portal, facilitating registration, filing of returns, forwarding returns to central and state authorities, and managing the computation and settlement of Integrated GST (IGST).
On the other hand, DG (Systems) aims to infuse technology into departmental processes, providing data support to CBIC and field formations by compiling and disseminating data related to tax collection and associated activities such as adjudication, appeals, and court cases.
According to the official, merging the two databases will enhance coordination between Central GST (CGST) and State GST (SGST) officers, improving their ability to track down tax evaders and thereby strengthening the overall tax compliance framework.
**Source:** The Financial Express
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This note summarizes the key points from the article, highlighting the planned integration of databases to curb GST evasion and improve tax administration efficiency.
**Note: Government to Integrate Data Repositories to Curb GST Evasion, Fraud**
