NEW DELHI: The revenue department on Monday said data analytics has detected persons showing turnover of crores of rupees in
GST but not paying a single rupee in income tax, and announced there would be no change in the reporting requirement with the display of GST turnover data in Form 26AS for honest taxpayers.
In a statement, the Department of Revenue ( DoR) reiterated that there will be no extra compliance burden on the taxpayers for GST turnover displayed in the Form 26AS, which is an annual consolidated tax statement that can be accessed from the income-tax website by taxpayers using their Permanent Account Number (PAN).
"The GST turnover is being shown in 26AS just for the information of taxpayer. DoR acknowledged that there ..
The DoR said that the notified Income Tax Return for the current AY 2020-21 already requires reporting of GST outward supplies in the Schedule GST. Therefore, the information displayed in Form 26AS would provide ease of compliance to the taxpayers in filling Schedule GST.
"There would be no change in the reporting requirement with the display of information of GST turnover in Form 26AS because the honest taxpayers are already furnishing GST returns and I ..
Beginning June 1, 2020, Form 26AS has been revamped to an ''Annual Information Statement'' which apart from the TDS/ TCS details, shall now contain comprehensive information relating specified financial transactions, payment of taxes, demand/refund and pending/completed proceedings undertaken by a taxpayer in a particular financial year that has to be mentioned in the income tax returns.
It would also show turnover reported in Goods and Services Tax (GST) return form GSTR-3B.
It would also contain various information reported by reporting entities in statement of financial transactions such as information of cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, etc.
The earlier Form 26AS used to give information regarding tax deducted at source and tax collected at source relating to a PAN, ..
The DoR said it would ease the reporting of GST turnover in the GST Schedule of the Income Tax Return and should be seen as an important step in the direction of "Transparent Taxation - Honoring the Honest".
"The display of information of GST turnover in Form 26AS, at the same time, would force dishonest taxpayers (who earlier used to evade income tax by under-reporting their turnover in the income tax returns as compared to turnover reported in the GST ..
This would promote ease of compliance as the information regarding turnover reported in GST returns would be readily available to the taxpayers at the time of filing of their Income Tax Returns, the DoR said.
The revenue department has noticed that many unscrupulous persons are trying to avail or pass on input tax credit fraudulently by generating fake invoices and has already formulated a strategy for identifying these fake invoice generators which inte ..
These persons in most of the cases never file their income tax returns or disclose very meagre taxable income in the income tax return.
The suspected fake invoice generators are being identified for serious action under GST and other laws including suspension of their GST registration based on the fact that whether their income tax payment commensurate with the expected profit margin on turnover reported by them in the GST returns, the DoR said.
Source:-economictimes.indiatimes.com