In order to reduce tax evasion and increase reporting of turnover, the two tax authorities of India i.e. the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) have signed a Memorandum of Understanding (MOU) for exchange of information between two taxing authorities.
This has resulted in income tax website now showing GST data of a taxpayer. This sharing of information includes tracing non-filers under the Income Tax Act, 1961 and the Goods and Services Act, 2017. This shall help both the authorities to match revenue reported by taxpayer under Income Tax and GST. Any mismatch in data will be auto-populated or reflected in the E-Campaign tab of Compliance Portal on the website of the IT Department. The step by step guide for viewing the GST data on IT website is discussed below:
Step 1 – Go to https://www.incometaxindiaefiling.gov.in/home and login to the portal using e-filing User ID and password
Step 2 – Now under Compliance tab, Select “Compliance portal” option and click on Confirm button
Step 3 – Now Go to E- Campaign tab a notification will come under Non- filing of return
Step 4 – Now, click on the Notification, you will see the details for which non filing notice has been received. If you further click on the Business transaction details it will show the list of purchases made during the year as below. This data is from the GSTR 2A of a taxpayer.
As of now only details of expenses and purchases as reported in GST are being shared. Going forward details of turnover HSN wise, place of business as reported in GST will also be shared and details as per E-way bill may also be shared. This will help not only taxpayers but also to their tax advisors in reconciling turnover reported under two different platforms and also ensure timely compliance of reporting of the same.
A business income can be under-reported by either increasing bogus purchases or expenses or by not reporting the turnover. Details of major purchases and expenses on GST portal cannot be manipulated by the tax payer as that data is uploaded by the supplier and tax payer has no control over the same. Also, turnover cannot be under-reported in case of B2B cases over GST portal as the person to whom the sales have been made would want to avail the Input Tax Credit. Any practice of not reporting the sales invoice would then affect business-customer relationship. Accordingly, under reporting of turnover under GST is extremely difficult.