The Goods and Service Tax Network Company have to bear with 300 crores of invoices each month from 80 lakh users. This represents that Indian economy is heading towards digitalization and that’s one of the primary reasons why the big data plays a vital role in this policy of the government. Right from the filing of invoices to the filing of returns, data is generated through digital transactions, Jan Dhan, Aadhar, and mobile.
However, the collection of data will not be useful unless there is a smart approach towards this data so that it can help in solving the purpose of implementation of this policy in curbing of black money and tax evasion and to generate insights. All the tools used by the government to curb black money are inter-connected like demonetization, GST rollout, tax agreements, Benami Property Act etc and all these policies would be in vain if data analytics is not applied properly. We can see that revenue generated by the government through GST is decreasing, with a collection of Rs 95,000 crore in the first month of implementation that is in July to 86,703 crores in the last month of the year 2017 to 86, 318 crore till 25th February of 2018. According to finance minister of India, about 30% taxpayers registered with GST are still not filling their returns. These facts show that the revenue collection of government is going down mainly because of 2 reasons: frequent change in tax rates and inadequate use of data.
It’s important to note that advanced analytics approach provides successful and better policy formation and planning that will help the government to have a strong grip on fraud and false declarations. GSTN is like a heart for the new tax regime for which the data must be analyzed smartly. Since GST is a transactional task, it makes sense to view it in a transactional way.