New Delhi: The GST department will soon start analyzing data from income tax returns of companies and professionals and documents submitted to the Ministry of Corporate Affairs. The objective of this exercise is to widen the tax base and to ascertain whether the entities are paying their GST liability in full or not. At present there are 1.38 crore registered businesses and professionals under the Goods and Services Tax (GST). GST was implemented on July 1, 2017. Companies with an annual turnover of more than Rs 40 lakh in manufacturing and Rs 20 lakh in the services sector are required to register themselves under GST and file tax returns.
An official told PTI, “We will analyze the data on the basis of the information available with the Income Tax Department.” During the data analysis, the focus will be on those entities which are not exempted and which are taxed under GST. Need to register and file monthly or quarterly returns. After identifying the entities that are non-compliant with the GST law, the GST department will ask them at their registered place of business the reasons for non-compliance.
The official further said that the data analysis wing, along with the Ministry of Corporate Affairs (MCA), will go through the quarterly and annual data submitted by the companies to find out if there is any GST evasion. The official said that in the first phase, the Income Tax department and GST data would be reconciled. After this it will be matched with the MCA figures. “We will soon start matching the income tax data,” the official said.