No extra compliance burden for GST turnover in 26AS

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.

"The GST turnover is being shown in 26AS just for the information of taxpayer. DoR acknowledged that there may be some differences in GSTR-3Bs filed and the GST shown in the Form 26AS but it can't happen that a person shows turnover of crores of rupees in GST and doesn't pay a single rupee of income tax. There are quite a few such cases that have been detected in data analytics," it said.

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 Income Tax Return and reporting their turnover correctly," it added.

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.

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 returns) to report their correct turnover and consequently force them to pays the correct income-tax," it added.

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 inter alia takes into account the income tax profiles of the suspected fake invoice generators.

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 : Deccan Herald

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