With the help of data analytics, the Government has noticed that certain Taxpayers are reporting turnover valuing crores in their GST returns but are not paying the appropriate Income Tax 26 AS. To track these transactions and link the direct and indirect tax structure, the Revenue Department has started populating the details furnished in the GST returns in the Form 26AS of the Taxpayer.
Note: GST Form 26AS is an annual consolidated tax statement that can be downloaded from the Income Tax website
On 29 September 2020, The CBDT notified that the Principal Director General of Income-tax (Systems) or the Director-General of Income-tax (Systems) would upload information relating to the GST returns, which is in their possession, in the Annual Information Statement in Form 26AS in GST, within three months from the end of the month in which they receive the information.
The ‘Department of Revenue’ (DoR) has clarified that there will be no extra compliance burden on the taxpayers because of the new modification. Reporting requirements will not change, as well.
Experts believe that this move is in furtherance of the idea of ‘Transparent Taxation’ and will force dishonest taxpayers to report the correct turnover. This, in turn, will ensure that accurate Income Tax is paid and collected and also help you to understand what is 26AS.