BENGALURU: The commercial tax department’s new data analytics software, Third Eye, has been effective in tracking down defaulters of the Goods and Services Tax (GST), besides helping increase collections with little manual effort, say officials in the department.
The software recently detected non-payment of GST amounting to Rs 37 crore by a reputed business house. On June 20, the department officials swung into action and the company immediately paid Rs 15 crore, with a promise to pay the balance at the earliest.
In another instance, a local firm involved in renting out 238 commercial property units in Bengaluru was found not to have remitted the collected GST amount of Rs 6.8 crore to the government between December 2017 and April 2018. The department officials cracked down on the firm after which it immediately paid Rs 4.5 crore.
“The business intelligence software has a 360-degree view of online transactions and can detect discrepancies easily. We have already detected liability of more than Rs 150 crore and collected tax, interest and penalty of Rs 100 crore in just four months,” said MS Srikar, commissioner, commercial taxes department.
In the early months of GST last year, the commissioner said there were several challenges, including availability of data and processing of the same. However, he said the new software developed in-house with the help of the National Informatics Centre had made their job easy.
Srikar said they had identified the top 40,000 taxpayers (dealers) in the state and have embarked on a rigorous analysis of data provided by them in their monthly returns involving outward supplies and purchases, both from within and outside Karnataka. “We will rapidly increase enforcement activities in the coming weeks based on the inputs provided by the software,” he said.
Department officials said they had also strengthened their intelligence wing and results are starting to show.
“We are on the road to ensure Karnataka becomes self-reliant in commercial tax collection by 2019, wherein we don’t need to rely on the compensation being paid by the Centre for shortcomings in commercial tax collection,” a senior official of the enforcement wing said.
E-way bill increases collections
The e-way bill, which was first pioneered by Karnataka for intra-state movement of goods, has also helped the state to improve tax collection under GST. “Now, we (Karnataka) are in the top 10 in the collection of revenue pertaining to e-way bills,” commercial tax department officials said. The department has set up automated help desks for dealers as well as transporters to handhold them in the registration, enrolment and generation of e-way bills. A total of 9,647 tickets have been raised at the help desk till July 21. The department says it has resolved 95% of the cases.