Sharing of Data by Income tax Department with GST Department: CBDT Order

CBDT collaboration with CBIC or E-filing Income tax collaboration with GSTN

"Control on Tax Evasion is all about Reconciliation and matching."

Earlier GST department has asked the taxpayers to reconcile the GSTR 1 Vis-a-Vis GSTR 3b and GSTR2A Vis-a-Vis GSTR 3B data.

Now CBDT has issued an order that the Income-tax department shall share the ITR data with the GST Department in order to facilitate the GST department to compare the various parameters such as Turnover, Gross total Income, Turnover Ratio, Turnover Range, etc.

The order specifies three types of data to be shared:

1. Request Based:

In such case the following data shall be shared by CBDT with GST Department on the basis of a specific request from GST Department:

a. Status of filling ITR

b. Turnover

c. Gross Total Income (GTI)

d. Turnover Ratio

c. GTI Range

d. Turnover range

e. Any other field as decided by concerned authorities

2. Spontaneous Exchange of Data:

Modalities of which is yet to be decided by concerned authorities.

3. Automatic Exchange of Data:

In such a case, Certain data will be shared on auto mode basis. Modalities of which is yet to be decided by concerned authorities.

Some years ago when the Direct tax department went online for most of the transactions, very few would have imagined that department will leverage the benefits of going online to such extent. Whereas the GST has born on an online platform (GSTN) only is bound to take all the advantages of its era.

The taxpayer will have to be very cautious while filling the returns to make sure the synchronization between the GST and Income tax data in order to avoid any notice from either of the department. More than the taxpayer I would say, It is the tax practitioner's Task to make sure that everything is reconciled.

“...but in this world, nothing can be said to be certain, except death and taxes.” 

― Benjamin Franklin