“AI based data analysis has identified 2,558 traders whose purchase, sale and tax payment dues as per rules were not matching. After an in-depth study of such irregularities, action is being taken with a zone-wise strategy. Only identified traders were checked during the recent proceedings of the tax department. The action is not part of any special campaign and is a routine exercise,” a government spokesperson said.
The CM also appreciated the contribution of businessmen and entrepreneurs in the development of the country and state. He has directed officials to collect solid information before proceeding with raids against anyone.
Through digitization, records of purchase and sale of every registered trader are available on the Boweb portal of the state tax department. Direct monitoring of tax evaders is being done with the help of the Business Intelligence and Fraud Analysis software. In addition to this, registration, payment, notice, order, refund application, payment of due refund etc are all being done online.
“Through IT tool BIFA, activities of newly registered traders, including generation of high value e-way bills, is being investigated. With the department being completely online, UP is among the leading states in the country in filing GST returns,” the official said.
Among the major defaulters identified by the government is Sarvshree Indian Auto Wheels, a company engaged in manufacturing and servicing of heavy vehicles in Gorakhpur. When its data was analysed, some discrepancy was suspected. In details provided by the government, its tax liability for the financial years 2020-2021 and 2021-2022 is Rs 85.32 lakh less as compared to what it filed for 2019-2020. An excess ITC of Rs 32.77 lakh was claimed in Form-9C, but the amount was not deposited. Tax, interest and penalty of Rs 1.23 crore were fixed on the trader.
Another defaulter was Haji Textiles in Pilkhuwa of Hapur district. It makes bed sheets and has an actual turnover of Rs 25 crore but it has not deposited tax in cash even once. The firm used input credit from bills of value of less than Rs 50,000 to adjust the liability of outward tax in ITC to conceal the liability of its cash tax. The firm has accepted a liability of Rs 87.16 lakh.