The use of Artificial Intelligence makes its entry into the Indian Budget 2021 lexicon. While the Budget is about the country’s projected spends in areas where there can be growth, it is now also about tracking companies that default and the need to comply with rules of Ministry of Corporate Affairs (MCA).
Finance Minister Nirmala Sitharaman said:
“During the coming fiscal 2021-22, we will be launching data analytics, artificial intelligence, machine learning driven MCA21 Version 3.0. This Version 3.0 will have additional modules for e-scrutiny, e-Adjudication, e-Consultation and Compliance Management.”
“The capacity of GSTN system has also been enhanced. We have also deployed deep analytics and Artificial Intelligence to identify tax evaders and fake billers, and launched special drives against them,” she added.
The Indian government has previously adopted machine learning tools to fight tax evasion. Project Insight was launched in October 2017 to monitor high value transactions and detect tax evaders using technology, with a view to curb circulation of black money. To implement the project, the government had signed a contract with Information Technology major L&T Infotech Ltd.
Some countries using data to find tax evasion include Belgium, Canada and Australia. In the UK, a platform called Connect, developed by HMRC (UK), cross-references business’ and people’s tax records with other databases to establish fraudulent or undisclosed (misdirected) activity. The platform cost over £100 million pounds to launch.
Source: https://yourstory.com/2021/02/budget-2021-artificial-intelligence-being-used-track-gst-tax
