I-T Department, GSTN to share data to ensure Tax Evasion


With a goal to govern tax evasion, the Central Board of Direct Taxes (CBDT) on Tuesday notified the authority for furnishing information to the Goods and Services Tax Network (GSTN). The specific authority will be the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems). The IT authority will input into a Memorandum of Understanding (MoU) with the GSTN.

Features Incorporated in the MoU:

The MoU will cover components consisting of modalities of change of records, confidentiality, a mechanism for sustained maintenance, and so forth. Data will consist of request-primarily based change of data in which essential economic fields captured in going back of earnings like turnover or gross general profits, the fame of filing ITR, turnover ratio, GTI range, turnover variety and so on, spontaneous exchange of information and automatic trade of facts.


  • The MoU will assist in satisfying Section 138(1)(a) of the Income-tax Act, 1961 which affords that the tax authority may provide statistics to any officer, authority or frame appearing any duties beneath any regulation relating to the imposition of any tax or any such statistics acquired or acquired by means of any income-tax authority in the overall representation of his capabilities underneath this Act.
  • The section offers an option to board for furnishing such information thru an exact income tax authority. However, such information in the opinion of the Board or particular income-tax authority ought to be essential for enabling the alternative officer, authority or body to carry out his or its functions underneath that law.

How Will MoU be Performed?

  • Facilitation of exchange of statistics between authorities below profits-tax and GST are indicative of the government’s intention not to spare taxpayers from escaping tax payable under any of the laws. With extra information in hand, the government will be capable of validating the number of profits disclosed each under the income-tax and GST which could permit the authorities to perceive any beneath-reporting or non-reporting of income.
  • Though the order provides huge powers to the specified authority for offering records, it has to follow a well-defined protocol to make sure fair practices. Such trade of statistics will allow tax officers to put into effect the preferred cause of both the legal guidelines and save you the era of black cash.
  • To catch tax evaders and decrease black money generation, the income tax department and Goods and Services Tax Network (GSTN) signed a settlement to facilitate the alternate of records among the 2.
  • The I-T department will share key monetary information, inclusive of fame of IT return filings, turnover of the business, gross total earnings, and turnover ratio among others with GSTN, the records technology spine of the 2-12 months-antique indirect tax regime.
  • Besides, the two sides will determine at the modalities for the computerized change of information. The main of I-T (structures) or director well known of I-T (systems) will enter right into a Memorandum of Understanding (MoU) with GSTN for sharing such facts, The MoU shall also encompass distinct modalities including confidentiality, timings, relaxed maintenance, disposal after use, related to the trade of information, the circular issued through the primary board of direct taxes on Tuesday stated.

Review of  Impact

  • The move will allow the I-T department to confirm the information filed through agencies in profits tax returns, as compared to the annual GST returns.
  • According to CBDT, “While furnishing the records, the required income tax authority shall shape an opinion that sharing of such information is important for the purposes of permitting the required authority in GSTN to perform its functions underneath the goods and services tax (GST),”.

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