The GST department will soon begin analysing ITRs filed by businesses and professionals and also MCA filings to ascertain if the entities are adequately discharging their GST liability and widening the taxpayer base.

Currently, there are 1.38 crore registered businesses and professionals under the Goods and Services Tax (GST), which was launched on July 1, 2017. Businesses in manufacturing and services sectors with annual turnover of more than Rs 40 lakh and Rs 20 lakh, respectively are required to register themselves under the GST and file tax returns.

“We will be doing data triangulation based on the information available with the I-T department. If as per the analysis, the entities which should be paying taxes under GST are not doing so, then initially we will be sending a gentle inquiry,” an official told PTI.

The data analysis will focus on those entities which are not exempt and are required to register under the GST and file returns, either monthly or quarterly. After identifying the entities which are not complying with the GST law, the GST department will communicate to them at their registered place of business asking them the reasons for non-compliance.

The official further said that the data analysis wing will also sift through the quarterly and annual data filed by businesses with the Ministry of Corporate Affairs to find out if any GST evasion is taking place.

Matching of the I-T department and GST data would be the first phase, followed by MCA filing matching, the official said. “We will soon start with matching the Income Tax data,” the official said.

Several services sectors, including recognised educational institutions, agriculturists, electricity transmission or distribution companies, medical services by clinics are exempt from GST.