Income Tax evaders to be intimated through GST Data

The government is planning to use the data obtained from Goods and Services Tax (GST) filings to footprint the income tax evaders who are slipping away the income tax.

Though the project is still in the initial stage, the government wants to create a database whereby income of companies and their promoters could be matched with that of the tax returns filed

It is still unclear whether the government would use this data to dig out tax evasions in the earlier years or whether this will only be for prospective tax scrutiny.

Unlike the earlier tax regime, GST leaves a trail, especially for the business size, and it becomes hard to underreport income or exaggerate expenses.

Source: Economic Times

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