States, Centre told to use data analytics to widen GST tax base
· Business · Indian Express, Times of India
Officials have been asked to track tax anomalies and improve invoice matching to deepen the GST tax base following process reforms announced at the 57th GST Council meeting. Authorities will monitor retail sales misdeclared as B2B transactions and identify registered taxpayers with zero cash tax payments who set off entire liability against eligible input tax credit. A Rs 10,000 threshold for issuing showcause notices under GST is among business-friendly measures likely to be rolled out before April 1, 2027. The technology-led initiative will follow the Income Tax Department's NUDGE campaign approach using risk analytics and global information sharing frameworks.
Why it matters
Registered businesses with declared anomalies in GST returns will face transaction studies and potential compliance nudges, directly affecting their ability to claim input tax credit and operate within the formal tax system. Small traders and informal sectors may be pushed into formalisation as surveillance tightens.
Read the original report — Indian Express
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