The Central Board of Indirect Taxes and Customs (CBIC) has recently implemented an Automated Return Scrutiny Module for GST returns, following the directions from Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman. This advanced tool aims to enhance tax compliance, reduce manual intervention and increase tax administration efficiency by using data analytics. Read on to learn more about this module and how it benefits both tax officers and taxpayers.
Enhancing Tax Compliance with Data Analytics
The Automated Return Scrutiny Module, integrated into the ACES-GST backend application, leverages data analytics to identify risks and discrepancies in GST returns. Tax officers can scrutinize GST returns of Centre Administered Taxpayers selected based on data analytics and risks detected by the system. The module automatically generates alerts in cases of non-compliance.
Streamlining Communication and Actions
Tax officers can interact with taxpayers through the GSTN Common Portal to communicate discrepancies using FORM ASMT-10, while taxpayers can submit their replies using FORM ASMT-11. Subsequent actions include issuing an order of acceptance in FORM ASMT-12, issuing a show cause notice or initiating an audit or investigation.
Implementation and Rollout
The Automated Return Scrutiny Module’s implementation has begun with the scrutiny of GST returns for the financial year 2019-20. The required data for this purpose is already available on the officers’ dashboard.
A Non-Intrusive Compliance Verification Process
The module is a part of a non-intrusive compliance verification process designed for Central Tax Officers to scrutinize GST returns of Centre Administered Taxpayers. Taxpayers are selected based on data analytics and risks identified by the system. The module displays discrepancies and risks associated with a return to tax officers in their dashboard, streamlining the communication and action process.
In conclusion, the Automated Return Scrutiny Module for GST returns is a significant step towards improving tax compliance and simplifying the tax administration process. By leveraging data analytics and automating the scrutiny process, this module streamlines communication between tax officers and taxpayers, ultimately reducing manual intervention and leading to a more efficient and transparent tax system.