In order to bring GST evaders to book, the government is planning to scan bank account details of businesses to tally with their filings as part of their efforts to curb tax evasion. The idea is to improve upon the red flags, which have helped the government improve compliance, resulting in filing of the GSTR-3B forms rising over 12% to 81 lakh returns by the December 20, 2019 deadline.
The Central Board of Indirect Taxes and Customs (CBIC) along with GST Network, have devised what are commonly referred to as “red flags” that typically add up to around 40,000 a month in a tax base of over one crore. There are four to five parameters based on which alerts are sent out, with key focus being on the two GST returns that are filed.
“Through e-way bills and FASTag, we will be able to check if goods have actually moved. Data from banks will help us check if genuine transactions have taken place or bogus details have been filled up in the returns,” an official was quoted saying.
There will be a reminder sent if the data in GSTR-1 does not correspond with GSTR-3B. If the gap is around Rs 1 lakh, text messages are automatically sent to the company’s directors or the proprietor of a firm, asking them to look into the difference. This itself would be enough to get them to sort out the problem.