How Yogi Adityanath government is using Artificial Intelligence to identify tax evaders in UP

New Delhi, Dec 13: To identify the tax evaders among the traders, the Yogi Adityanath government is using Artificial Intelligence (AI) to crack down on them.

The investigating agencies have identified a total 2,558 defaulters using AI technology. According to an official statement, one of the defaulters, having a turnover of Rs 25 crore had not deposited the cash in tax even on one occasion.

The statement read, 'one of the defaults is Haji Textiles which is located in Pikhua of Hapur district which makes bed sheets and has an actual turnover of Rs 25 crore. However the tax has not been deposited in cash even once. The firm used input credit limit from bills of value less than Rs 50,000 to adjust the liability of outward tax in ITC itself to conceal the liability of its cash tax.'

It further aded that the department also took input regarding the firm from the local level and on conducting Reiki, it was found that only one main business place of the firm is declared and three other factories/godowns are running from unaccounted places.

The goods are kept by the firm at three undisclosed locations with the ulterior motive of concealing its turnover and tax evasion, the statement said.

It aded that the Special Disciplinary Branch of the State Tax Department searched three places. The investigating team also checked the GSTR-2A of the firm through Boweb portal and found that ITC was being taken by the firm by showing purchases from firms which were not actually doing any business.

The statement further said an undue ITC of Rs 59.30 lakh was availed by the firm by showing bogus purchases from non-existent firms.

The investigation was done on December 7 and the trader accepted his mistake and on the preliminary assessment itself the amount was deposited by the firm accepting the liability of Rs 87.16 lakh, the statement added.

The government also said that another firm was caught for alleged tax evasion.

Another firm caught for tax evasion is Sarvshree Indian Auto Wheels. The company is engaged in manufacturing and servicing of heavy vehicles in GIDA, Gorakhpur. When the State Tax Department analysed the data on the basis of inputs received from the BIFA report about the concerned trader, some discrepancy was suspected the government statement said.

Investigation took place on December 10-11 and on the basis of data analysis, it came to light that the tax liability accepted in GSTR-3B for the financial years 2020-21 and 2021-2022 is Rs 85.32 lakh less when compared to GSTR-1 and the GSTR filed by the trader for the year 2019-2020. A total excess of ITC of Rs 32.77 lakh was claimed in Form-9C, but the amount was not deposited. Also, stock transfer of Rs 5.40 lakh of parts at an undisclosed business locations to districts other than declared business locations were shown, the statement said.

The State Tax Department has been given clear instructions by Chief Minister, Yogi Adityanath to ensure that no innocent businessman is harassed and action was taken only against those against whom there is solid evidence.

"CM Yogi has directed the officials to collect solid information and do reiki before proceeding with the raid, the official statement read.