No extra compliance burden on taxpayers for GST turnover displayed in Form 26AS: DoR
NEW DELHI ;
THE Revenue Department on Monday said data analytics has detected persons showing turnover of crores of rupees in GST but not paying a single rupee in income tax, and announced there would be no change in the reporting requirement with the display of GST turnover data in Form 26AS for honest taxpayers. 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, which is an annual consolidated tax statement that can be accessed from the Income Tax website by taxpayers using their Permanent Account Number (PAN).
“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 I-T 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 GST return form GSTR-3B.
It would also contain various information reported by reporting entities in statement of financial transactions such as details of cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, etc.