GST audit uncovers tax evasion of 22,000 rupees

The Indirect Tax Administration in the current fiscal year helps detect tax evasion of 22,000 Indian rupees in New Delhi. The Central President of Indirect Taxes and Customs maintains that this tax evasion concerns nearly 48,000 cases to date.

The process by which the fraud was detected

The Indirect Tax Administration is currently working on the analysis of company tax returns. These are particularly companies that have filed their files with the income tax department, as well as GST registration data. The goal is to detect structures that were supposed to comply with the rule, but did not.

In addition, the authorities also want to expand tax revenue. The head of this commission of inquiry also pointed out thatno proposal seeks to undo the clarification of the project finance law. According to the latter, the input tax credit is not available on corporate CSR expenditure. On the one hand, the changes to customs duties will allow companies to gain autonomy.

What state of progress for GST audits?

The audits took place on 48,000 cases between 2022 and 2023. The data available so far is through the end of the second quarter of the fiscal year. These various investigations made it possible to detect tax evasion worth nearly 22,000 Indian rupees. Separately, recoveries were made at around Indian rupees 4000 crores.

In addition, one of the first discrepancies noted during the investigations is the use of input tax credit. This is particularly due to the misinterpretation of the law. Indeed, some taxpayers may have requested a tax credit on inputs for which the credit is no longer possible. On the one hand, it was also found that there are cases where the value of the goods was not declared in a proper way.

In short, it is very important to review the system concerning tax liability in the city of New Delhi. In addition, taxpayers should be better trained to avoid misunderstanding the law.

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