UP’s biggest GST evasion caught with the help of AI, Ghaziabad firm had committed fraud of Rs 19.66 crore: The biggest ever GST evasion in the state has been detected with the help of Artificial Intelligence (AI) in Ghaziabad (Ghaziabad GST Evasion). State tax department officials are engaged to detect GST evasion. The Artificial Intelligence (AI) of the department is also helping them in this work. A firm had fraudulently taken input tax credit of Rs 19 crore 66 lakh from the department in a single financial year. After this, when the firm started filing its returns, the AI installed in the system analyzed it. In which it was revealed that whatever ITC claim has been made by the firm is completely fake. Then when the department officials cracked down on the owner of the firm, he deposited Rs 19 crore 66 lakh in the department. In this, one crore rupees was taken in cash and the remaining money was taken from his bank account.
- In Ghaziabad, the state tax department detected the biggest GST evasion with the help of AI.
- A firm fraudulently claimed input tax credit of Rs 19.66 crore, which was identified as fake by the AI.
- The firm deposited the evaded amount of Rs 19.66 crore after being caught by the department.
- The AI system scrutinizes e-way bills issued for returns filed by traders and firms.
- With the AI’s assistance, a firm claiming excess ITC of about Rs 20 crore was caught and additional ITC was recovered.
- The AI monitors tax compliance, identifies non-filers, and detects potential tax evasion activities, ineligible ITC claims, and taxpayer profiling.
- Traders engaging in suspicious activities are flagged by the AI for investigation and tax recovery.
The state tax department scrutinizes the e-way bills issued for the returns filed by traders and firms every month through an AI enabled system. In the same sequence, on the instructions of Joint Commissioner of Corporate Circle Diparatan Singh, investigation of paint selling firms of Indirapuram area was started. Investigation found that a firm has claimed excess ITC of about Rs 20 crore on account of IGST in monthly return GSTR-3B relative to ITC availed on purchases made in this financial year. It was caught with the help of AI. After this, the departmental officers themselves investigated it. When irregularities were found, a notice was issued to the concerned firm and additional ITC was recovered.
How the system works
Officials said that the AI installed in the system keeps an eye on every activity of the traders and the firm. This includes monitoring tax compliance, identifying non-filers, identifying potential tax evasion activities by taxpayers to avoid tax, identifying ineligible Input Tax Credit (ITC) claims, taxpayer profiling. Getting complete information about taxpayers through Dealer 360, risk based analysis of taxpayers, displaying the difference based on declared turnover and e-way bills issued.
There is a red flag in these cases
Officials say that new traders may have downloaded more e-way bills, or have discrepancies in returns, are not depositing tax or are availing undue benefits of ITC. AI starts showing red flags to such traders on the portal. Then the department officials start investigating such traders. After investigation, the process of tax recovery is started by giving notice.