New Delhi, July 14, 2017

The government has set up a new wing under the indirect taxes body to provide intelligence inputs and carry out big data analytics for taxmen for better policy formulation and nabbing evaders.

The Directorate General of Analytics and Risk Management (DGARM) will be under the Central Board of Excise and Customs (CBEC), mainly to use internal and external sources for detailed data mining to generate actionable inputs, the revenue department said in an office memorandum. The DGARM, set up on July 1, coinciding with the roll-out of the GST regime, has four verticals headed by an official of rank of additional director general or principal ADG. It will function as an apex body of CBEC for data analytics and risk management, and report to the CBEC chairman.

Incidentally, the CBEC is to be renamed as the Central Board of Indirect Taxes and Customs (CBIC) after excise duty along with service tax and a dozen other central and state levies were subsumed into GST.

“The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation. The field formations of CBEC are expected to gainfully and effectively utilise the data and other inputs shared by the DGARM,” the memorandum said.

As part of the DGARM, a National Targeting Centre has been set up, which is responsible for application of a nationally coordinated approach to risk analysis and targeting of risky goods and passengers crossing the borders of the country. “It shall provide 24×7 operational risk interdiction supports to field formations of the CBIC,” it said.

The centre in question will institutionalise coordination with other government departments and other stakeholders for sharing databases, information, intelligence and reports to build risk profile of entities. A Centre for Business Intelligence and Analytics has also been set up and will be responsible for identification of information requirements of the CBEC. It will utilise data feeds from internal sources.

It shall be responsible for providing analytical inputs to support identification, targeting and risk management functions of the National Targeting Centre, the Risk Management Centre for Goods and Services Tax, and the Risk Management Centre for Customs.

The third vertical of the DGARM is the Risk Management Centre for Goods and Services Tax, which will institutionalise mechanism to collect necessary inputs, adopt coordinated approach and share the outcome for risk-based identification for the purpose of scrutiny, audit and enforcement functions.

 Besides, the Risk Management Centre for Customs will be responsible for assessment and targeting of risky cargo crossing the borders through sea, air and land. The DGARM will do detailed data mining and analysis to generate outputs for focused and targeted action by field formations and investigation wings of the CBEC.

[The Economic Times]