Lok Sabha Question No. 4690 (UNSTARRED), answered on 2019-07-22
Subject: Tax Evasion
Ministry: FINANCE
Asked by: Rahul Ramesh Shewale, Sangeeta Kumari Singh Deo, Bhartruhari Mahtab

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO. 4690

TO BE ANSWERED ON MONDAY, JULY 22, 2019 ASHADHA 31, 1941 (SAKA)

## TAX   EVASION

4690. SHRI RAHUL RAMESH SHEWALE:

SHRIMATI SANGEETA KUMARI SINGH DEO: SHRI BHARTRUHARI MAHTAB:

Will the Minister of FINANCE be pleased to state:

- (a)  whether the Government has initiated data analysis to detect mismatch between Goods and Services Tax  (GST)  returns  and  Income  Tax  Returns  to  penalise  culprits  of  tax  evasions  and  money  laundering across the country;
- (b)  if  so,  the  details  thereof  along  with  the  number  of  such  culprits  identified  so  far  across  the  country, State/UT-wise;
- (c) the details of the overstated claims of GST across the country since inception, company-wise;
- (d) the details of the revenue collected from GST and Income Tax by the Government since implementation of GST in the country; and
- (e) the other steps taken/being taken by the Government for early detection of tax evasion cases along with achievements thereof?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a)  to  (e)      The  Government has  taken  initiatives to  integrate the important financial  fields in  Income-Tax Returns and GST Returns so that the discrepancies in financial data of entities can be traced at the granular level. In order to facilitate seamless exchange of data between Central Board of Direct Taxes (CBDT) and Goods and Services Network (GSTN), the CBDT has passed an order u/s 138(1)(a) of the Income-tax Act, 1961 dated  30.4.2019,    specifying  Principal  Director  General  of  Income  tax  (Systems)  as  the  prescribed authority for the purposes of furnishing information in respect of income-tax assesses to the Nodal Officer, GSTN.  Subsequently,  an  MoU  was  signed  between  CBDT  and  GSTN  on  14.05.2019  incorporating  the modalities  of  exchange  of  data,  handling  of  data,  maintaining  its  confidentiality  etc.  Based  on  MoU, exchange  on  information  between  CBDT  and  GSTN  takes  place.  Based  on  data  inputs  and  information received from various sources cases of tax evasion are identified and appropriate actions are taken.

The  important  measures  taken  by  the  Government  for  detection  of  tax  evasion  include-  Computer Assisted Scrutiny selection (CASS), Non-filers Monitoring System (NMS), Income Tax Business Application (ITBA). Further the Government also collects information on Specified financial Transactions, above notified thresholds,  relating  to  cash  deposits,  credit  card  payment,  purchase  and  sale  of  properties,  purchase  of shares and mutual funds etc. Whenever there is any credible information with regard to evasion of direct tax, the Income Tax Department takes action in the form of search, seizure, survey etc., as per law.

A specialized Directorate with in the Central Board of Indirect Taxes and Customs (CBIC) engaged in  Data  Analytics  &  Risk  Management  disseminates  analytical  reports  and  intelligence  inputs  to  field formations of CBIC for the purpose of scrutiny, audit and enforcement, to check GST evasion in general and fraudulent credit availment in particular. The GST Council has also approved the use of e-invoicing in B2B transactions.

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