Recently , CBDT & CBIC has signed a memorandum of understanding (MoU) for sharing of Information. As per the MoU, interalia, CBIC will share the GST data based on PAN of the supplier.
Further consequent upon signing of MoU both the portals i.e. Income tax and GST portal has been linked with each other and data transfer process has been initiated by both the departments for tracking the non filers.
If an assessee is registered under GSTIN but has not reported the business data than he will be notified on the Income tax e filing portal. The Income tax portal is now also showing the list of purchases made during the year which is based upon GSTR-2A data.
Further notice under section 142(1) of the Income Tax Act, 1961 can now be issued by the assessing officer wherein GST return has been filed but income not reported through ITR. Hence all suppliers of goods or services need to ensure that they file their GST returns with accuracy after proper reconciliation with the accounts. Further if GST returns have not been filed , such suppliers should file their pending GST returns.
How to check GSTR-2A data on Income Tax Website
The stepwise action needed for checking the GSTR-2A data on Income Tax website are as under:-
- Login at the portal of www.incometaxindia.gov.in
- Click on Compliance Menu. It will redirect you to compliance portal.
- Click on e- Campaign, a notification will come under Non- filing of return. After clicking on the Notification, you will see the details for which non filing notice has been received.If you further click on the Business transaction details it will show the list of purchases made during the year as below. This purchase data is fetched from the GSTR-2A data of the assessee.
GST disclosure in the Income Tax Returns
– Those assessees who have business income and file the returns ITR 3 to ITR -7, need to ensure that their income tax returns and GST returns correlate and should prepare reconciliation statements to avoid future issues during audit.
– In ITR 3 the following details regarding GST needs to be given.
- Details of taxes levied on sale (CGST, SGST, IGST, and UTGST) and these details needs to be matched with the electronic liability register on the GST portal.
- Details of CGST, SGST, IGST, and UTGST paid on purchases and the credit taken thereof, these details should be matched with the electronic credit ledger available on the portal.
- If any GST refund is receivable from the government and not credited to Profit & Loss account then the details of the same are required to be given in the Income Tax Return.
– In ITR 4 the following details regarding GST needs to be given.
- Taxpayers are required to furnish the GST Registration number in the Income Tax Return.
- Taxpayer is required to provide Turnover/Gross Receipts under GST as mentioned in the GST returns. These details can be taken by the taxpayer from the GSTR 1 filed by them.
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