AI eyes on traders: tax evasion no longer easy

Lokmat News Network

Chhatrapati Sambhajinagar

Traders in Chhatrapati Sambhajinagar who hide income and evade GST or income tax are now under digital watch. The GST and Income Tax departments have started using Artificial Intelligence (AI) to track suspicious transactions through UPI, QR codes, and card payments.

Advanced AI systems are flagging discrepancies, triggering action against tax evaders. The warning is clear digital footprints are being traced, and the scope for hiding earnings is narrowing fast. In FY 2024–25, AI-backed analysis helped the State GST Department detect 71 bogus taxpayers in the city. Meanwhile, the Income Tax Department recently conducted raids at 150 locations across India, using AI to zero in on targets. Officials stress that GST registration is mandatory for businesses with a turnover above Rs 40 lakh (Rs 20 lakh for service providers). Post-pandemic, digital payments now account for over 60% of transactions making every rupee traceable. With digital surveillance tightening, experts urge business owners to adopt transparent practices or face legal consequences.