NEW DELHI: GST Network (GSTN) has invited bids from private entities for "360-degree" profiling of taxpayers for early detection of fraud because it seeks to become into an end-to-end platform for checking GST evasion, from being just a tax collection portal.
The analytics company to be roped in can have the mandate for designing and developing a Fraud Analytics System. GST Network has then again barred Infosys from bidding for the project to avoid battle of interest.
The device will take about an year to be operational and leverage existing knowledge bearing on GST registration, go back submitting and e-way invoice, in conjunction with the information from other exterior sources comparable to Financial Intelligence Unit (FIU), Central Board of Direct Taxes (CBDT), banks and state tax departments.
According to the eligibility criteria, the bidder will want to have a turnover of Rs 300 crore and must have posted profit prior to now three financial years. Also, it must have revel in in implementing Advanced Analytics, the GSTN stated within the Request For Proposal (RFP).
The fraud analytics company could be tasked with established order of taxpayer's id. "Based on information available within GSTN as well as third party information, it is expected to reliably establish the identity/360 degree view of the taxpayer and key members of its management," stated the RFP.
It would also identify taxpayer's possibility profile by means of analysing knowledge on purchasers and dealers as part of returns knowledge, whether or not the taxpayer deals with sensitive or evasion prone commodities, historical past of the owner of the corporate in addition to speedy exchange of promoters, amongst others.
The company, to be appointed for six years, would even be required to indicate tactics to forestall revenue leakages and forecast revenue enlargement and other econometric research for coverage formation.
It can also suggest adjustments in regulations, rules/ procedures according to fraud detection to plug loopholes and establish subject matter/evidences that could be shared with tax authorities for prosecution of fraudulent taxpayers.
To ensure that there is no battle of interest, the GSTN has barred Infosys from bidding for the fraud analytics project.
Infosys had in 2015 gained the Rs 1,380-crore deal for developing and running GSTN's backend software and hardware. The indirect tax reform, GST subsumed over a dozen native taxes and was once rolled out from July 1, 2017.
GSTN has within the bid file mandated that the bidder must develop good enough capability for knowledge storage and calculating complexity of data.
"In the near future, GSTN is likely to experience an 'explosion' in the amount of data in its transactional systems," the GSTN stated.
"The figure of data is likely to have quantum jump when the system such as E-way Bill data, external agency data like CBDT, information from banks, Ministry of Corporate Affairs, Shops and Establishments Department, other Government and non-government agencies etc. which will be integrated with the GST fraud analytics system," it added.
To be sure that complete confidentiality of data, GSTN has mandated that the eligible bidder would have to verify a separate segment inside their administrative center premises for endeavor the fraud analytics project.
GSTN might also position one or two of its employee there for tracking.
"GSTN may, in case required, provide desktops and laptops for day-to-day operations for carrying out fraud analytics," stated the RFP.
Besides, the folk involved within the project would not be allowed to "carry any storage device such as USB sticks etc. to GSTN premises".
The GST Council, chaired by means of Finance Minister Arun Jaitley and comprising state counterparts, last week approved changing GSTN into a wholly owned executive company. Currently 51 per cent stake in GSTN is held by means of private entities and 49 per cent by means of the Government.
The analytics company to be roped in can have the mandate for designing and developing a Fraud Analytics System. GST Network has then again barred Infosys from bidding for the project to avoid battle of interest.
The device will take about an year to be operational and leverage existing knowledge bearing on GST registration, go back submitting and e-way invoice, in conjunction with the information from other exterior sources comparable to Financial Intelligence Unit (FIU), Central Board of Direct Taxes (CBDT), banks and state tax departments.
According to the eligibility criteria, the bidder will want to have a turnover of Rs 300 crore and must have posted profit prior to now three financial years. Also, it must have revel in in implementing Advanced Analytics, the GSTN stated within the Request For Proposal (RFP).
The fraud analytics company could be tasked with established order of taxpayer's id. "Based on information available within GSTN as well as third party information, it is expected to reliably establish the identity/360 degree view of the taxpayer and key members of its management," stated the RFP.
It would also identify taxpayer's possibility profile by means of analysing knowledge on purchasers and dealers as part of returns knowledge, whether or not the taxpayer deals with sensitive or evasion prone commodities, historical past of the owner of the corporate in addition to speedy exchange of promoters, amongst others.
The company, to be appointed for six years, would even be required to indicate tactics to forestall revenue leakages and forecast revenue enlargement and other econometric research for coverage formation.
It can also suggest adjustments in regulations, rules/ procedures according to fraud detection to plug loopholes and establish subject matter/evidences that could be shared with tax authorities for prosecution of fraudulent taxpayers.
To ensure that there is no battle of interest, the GSTN has barred Infosys from bidding for the fraud analytics project.
Infosys had in 2015 gained the Rs 1,380-crore deal for developing and running GSTN's backend software and hardware. The indirect tax reform, GST subsumed over a dozen native taxes and was once rolled out from July 1, 2017.
GSTN has within the bid file mandated that the bidder must develop good enough capability for knowledge storage and calculating complexity of data.
"In the near future, GSTN is likely to experience an 'explosion' in the amount of data in its transactional systems," the GSTN stated.
"The figure of data is likely to have quantum jump when the system such as E-way Bill data, external agency data like CBDT, information from banks, Ministry of Corporate Affairs, Shops and Establishments Department, other Government and non-government agencies etc. which will be integrated with the GST fraud analytics system," it added.
To be sure that complete confidentiality of data, GSTN has mandated that the eligible bidder would have to verify a separate segment inside their administrative center premises for endeavor the fraud analytics project.
GSTN might also position one or two of its employee there for tracking.
"GSTN may, in case required, provide desktops and laptops for day-to-day operations for carrying out fraud analytics," stated the RFP.
Besides, the folk involved within the project would not be allowed to "carry any storage device such as USB sticks etc. to GSTN premises".
The GST Council, chaired by means of Finance Minister Arun Jaitley and comprising state counterparts, last week approved changing GSTN into a wholly owned executive company. Currently 51 per cent stake in GSTN is held by means of private entities and 49 per cent by means of the Government.
GSTN to rope in private entities for tax payer profiling, fraud analytics
![GSTN to rope in private entities for tax payer profiling, fraud analytics]()
Reviewed by Kailash
on
May 08, 2018
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