The income tax department will share data with GST Network (GSTN) on important financial parameters such as status of I-T returns filing, turnover and income of businesses, as the authorities seek to plug loopholes and nab tax evaders.
Income tax officers and GSTN, the company that handles theinformation technology backbone of the new indirect tax regime, will alsodecide on the modalities for “automatic” and “spontaneous”exchange of data besides the “request-based” data exchange.
The principal director general of I-T (systems) or directorgeneral of I-T (systems) would enter into a memorandum of understanding (MoU)with GSTN to facilitate the process of furnishing information, according to anorder by the Central Board of Direct Taxes (CBDT).
The MoU would include modalities of exchange of data,maintenance of confidentiality, and mechanism for safe preservation of data.
The timeline for furnishing information shall also bedecided by the principal director general of I-T (systems) or director generalof I-T (systems) in consultation with GSTN and would be included in the MoU.
“While furnishing the information, the specified incometax authority shall form an opinion that sharing of such information isnecessary for the purposes of enabling the specified authority in GSTN toperform its functions under the goods and services tax (GST),” the CBDTsaid.
Exchange of data between I-T and GST authorities would meanthat the tax authorities will now reconcile the data sets reported bybusinesses in income tax returns (ITRs) vis-à-vis annual GST returns.
According to the CBDT, the important financial fields on which request-based data exchange will take place include status of filing of ITR, turnover, gross total income, turnover ratio, GTI (gross total income) range, turnover range and any other field which will be decided by the authorities concerned.