In a significant move to enhance revenue and strengthen capacity, the Himachal Pradesh State Taxes and Excise Department is all set to introduce modern techniques of audit enforcement including the utilization of Artificial Intelligence (AI).

This initiative comes after receiving approval from the Cabinet for the Revenue Enhancement and Capacity Augmentation project, which aims to mitigate revenue losses associated with the Goods and Services Tax (GST).

By employing cutting-edge tools and techniques and hiring experts, the Department intends to swiftly address tax evasion, ultimately bolstering the State’s coffers.

The implementation of this project will provide real-time data on GST defaulters, ensuring better oversight and an informed decision-making process.

Chief Minister Sukhvinder Singh Sukhu emphasized the commitment of the state government to incorporate modern technologies into the functioning of government departments to improve efficiency and transparency in the system.

He said that the Excise and Taxation Department’s adoption of the modern technique of audit enforcement is expected to facilitate accurate data preparation, enabling the detection and prevention of tax fraud.

It is estimated that this project will generate additional annual revenue of Rs 250 crore for the state exchequer, he added.

The Department’s limited manpower, promptly analyzing taxpayer data to identify tax losses has posed a significant challenge before it.

The project aims to overcome this obstacle by leveraging AI technology, enabling the swift identification of revenue leakages and providing precise information for augmenting the state’s GST revenue.

Furthermore, the project will provide support to the state government in making informed decisions on incentive policies by analyzing periodic revenue collection patterns.

It will additionally contribute to increasing voluntary tax compliance through taxpayer education initiatives.

“The project will also enhance the capacity of departmental officers across core functions, fostering effective vigilance and enabling the identification of potential areas for revenue enhancement.”

“As the Project progresses, the implementation of AI technologies will further empower the department to tackle prevalent challenges more efficiently,” he said.

By embracing AI and incorporating advanced data analysis techniques, the Excise and Taxation department is poised to revolutionize revenue collection, combat tax evasion, and streamline the decision-making process, he said.

He said that this forward-thinking approach marks a significant step towards achieving the state government’s goal of employing modern technologies to bring efficiency and transparency in governmental operations.