Entities identified on basis of risk parameters to face GST audit

NEW DELHI: The revenue department has come out with a plan to audit accounts of GST registered businesses based on risk parameters, which may include history of tax evasion, irregular filing of returns and employing “questionable accountants”.

Unveiling the audit plan, the Directorate General of Audit (Indirect Taxes) said the analytics arm of CBIC would generate a list of GST payers with risk scores and share it with audit commissionerates for scrutiny.

The taxpayers identified as “risky” would be divided into 3 categories — small (with a turnover of up to Rs 10 crore), medium (Rs 10-40 crore) and large (above Rs 40 crore).

The audit would be conducted on the basis of annual returns filed for 2017-18 fiscal — the first year of the GST implementation. (AGENCIES)