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. 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: 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, 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.
GST Details In Form 26AS
- The GST turnover, based on the details furnished in Form GSTR-3B are visible in the Form 26AS.
- Details published in monthly GSTR-3B returns for FY 2019-2020 are already appearing in the Form 26AS. As on today, these details (Taxpayer’s monthly turnover as per Form GSTR-3B) are visible in the Part H of Form 26AS.
- The details reflected in the Form 26AS are:
- Date of filing of GST return
- Return period
- Taxable Turnover
- Total Turnover
- For AY 2020-21, taxpayers are required to disclose GST outward supplies in the Schedule GST of their Income Tax Return. The GST details in Form 26AS will assist the taxpayers in filling this schedule.
- These details in Form 26AS are just for the information of the Taxpayer.
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.