📄 Abstract
The integrity of the GST ecosystem, for maintaining the norms of the Input Tax Credit (ITC) mechanism, acts as a fundamental basis to the effectiveness of India's Goods and Services Tax (GST) regime. However, in case the ITC claims end up being fraudulent being facilitated through fake invoicing or through circular trading and posing as fictitious transactions, it shall continue to undermine tax compliance and revenue mobilisation. To strengthen enforcement, tax authorities have introduced technology-enabled compliance mechanisms, including Radio Frequency Identification (RFID), FASTag-based vehicle tracking, and the Electronic Way Bill (E-Way Bill) system, to enhance transaction verification and detect tax evasion. This study evaluates the effectiveness of these digital interventions through a forensic accounting perspective. Using secondary data from GST disclosures, enforcement records, and government policy reports, the analysis integrates transaction-level reconciliation, trend analysis, and anomaly detection to examine the consistency between tax invoices, E-Way Bills, and the physical movement of goods captured through RFID-enabled FASTag infrastructure. The findings indicate that integrating digital invoicing with real-time logistics data has substantially improved transaction traceability, audit efficiency, and risk-based enforcement, thereby reducing opportunities for fraudulent ITC claims and fictitious supply chains. Nonetheless, persistent challenges—including fragmented data architecture, interoperability constraints, uneven technological adoption, and compliance burdens among small and medium-sized enterprises (SMEs)—continue to limit the effectiveness of the digital compliance ecosystem. The study extends the literature on forensic accounting and digital tax governance by developing a forensic framework for assessing ITC-related risks within technology-enabled tax administration. It further provides policy insights into the design of integrated digital compliance systems, highlighting the importance of interoperable data infrastructure and analytics-driven enforcement for improving tax integrity and strengthening revenue administration in emerging economies.
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📚 How to Cite:
Dr.Ashima Negi, Ms.Chesta Arora , AN ANALYSIS OF DIGITAL TRANSPARENCIES UNDER THE GST 2.0 ECOSYSTEM WITH KEY FOCUS ON DIGITAL TRANSFORMATIONS IN ITC CLAIMS , Volume 13 , Issue 7, July 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 151 - 158 ,