Finance Minister Nirmala Sitharaman has announced the usage of artificial intelligence and deep analytics to track and analyse the tax evasion problem in GST along with its application in eGovernance and to ease compliance burden.
This news has come along with the introduction of AI-based features in MCA-21 version 3 that will allow a seamless and hassle-free regulatory filing for businesses and startups.
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According to the budget announcement, the Goods and Service Tax Network (GSTN) capacity has also been improved with the deployment of artificial intelligence and analytics, which will help the companies identify the tax evaders as well as monitor the fake billers.
Like this announcement, in 2017, the government launched Project Insight where it leveraged machine learning to track such frauds and used technology to curb the black money.
The initial announcement of deploying artificial intelligence in the MCA-21 portal was made in 2019, hoping to make the compliance easier and routine enforcement activities seamless. However, with the budget announcement this year, artificial intelligence seems to have a deeper impact.
The AI and ML features will also ensure that the databases are interlinked to fill the known details. This brings automation to the entire process, allowing carry out of routine enforcement 24×7 via autopilot.
For the startup ecosystem, this move has become even more crucial, as “MCA-21 shares crucial information to various stakeholders such as the regulators, investors and companies.” Such a move will only increase the authenticity and comprehensiveness of corporate and startups.