New Delhi: In a move to address the issue of data discrepancies in tax return filings, the Central Board of Indirect Taxes and Customs (CBIC) is set to leverage technology to resolve mismatches and alleviate the resultant disputes.
According to an analysis conducted by CBIC, it was observed that most of the tax-related disputes were a result of show-cause notices related to data discrepancies such as short payment of GST, excess availment of input tax credit (ITC), and non-payment of GST on taxable services under reverse charge mechanism (RCM).
To address these data mismatches, the GST Network is working on developing a new register for solving the RCM challenges. CBIC will create a system for keeping records that will reflect all reverse charges liable to be paid, with functionality to disallow taking ITC beyond what’s applicable for taxpayers.
