GST Taxpayers will get ‘risk scores’ very soon

The goods and service tax (GST) specialists will soon draw up long draw up a list of tax payers with ‘risk scores’ that will choose the degree of audit scrutiny they face.

A broad plan is being worked out despite the fact that annual return filings has been delayed by two months to August 31. Audits of these returns for 2017-18 was to initiate from July.

The directorate general of audits has communicated a plan to field, setting the ball moving for the activity that will be first after the take off of new tax routine.

A list of tax payers alongside risk scores will be given to field arrangements in isolating them in three classifications according to their turnover. These would be assigned risk flags for the field’s convenience. Parameters and categorisation will be changed for some audit commissionerate to guarantee sufficient portrayals of risky tax payers in every category.

Around 70 percent of taxpayers must be examined in every category based on risk parameters in the order of sequence, while 10 percent will be chosen haphazardly. Remaining 20 percent to be chosen by the commissionerate, thinking about local risk parameters, if adequate taxpayers have not filed annual return, audit commissionerate should keep directing legacy audit under excise and service tax up to 31 August 2019, in case taxpayers are accessible for such audit.

Tax specialists state business need be set up for these audits.

“Organizations ought to be cautious in submission of the GST audit information and guarantee that it is reconciled before submission as this information will likewise be utilized for live audits in future in addition to being utilized to decide the taxpayers who might be subjected to the audit ” M S Mani, Partner, Deloitte India.

They also batted for leniency.

“Since this will be the first on location GST audit which will be directed by office it will be great in the event that they are lenient on the tax positions received by organizations on issues which were not exceptionally clear at the onset of GST usage,” said Anita Rastogi, accomplice, PwC.

This is significant as there is a distinction between non installment of tax due to interpretational issues and purposeful tax avoidance, she included.

For further details or clarifications, contact Certicom Consulting.