From the recent circulars passed in the context of Tax and GST, it is crystal clear that the central GST authorities, in collaboration with the State GST authorities, wants transparency in the Tax and GST deductions and payment. It looks like they are now determined to fill all the loopholes so that the system could be made more apparent. The Tax and GST deductions should not just reflect in data and papers but should reach the Government treasury. The agenda comes to be known as ‘intelligence sharing‘ between central and state government tax department.
Investigative agencies and the Central Economic Intelligence Bureau work in collaboration and are contracted to find out the glitches but it seems as if only selective, incomplete information and Data are being shared amongst them which is resulting in the improper and insufficient output, said the Finance Secretary in the meeting held for ‘Working Group on Intelligence Apparatus‘. He laid emphasis on the sharing of reliable information for a better outcome.
The chief commissioner of State Tax, AP, doubts the intelligence inputs and thus directed the State tax officers through the new Circular passed, to track the data shared by the intelligence department and highlight the issue if found any discrepancy even for the companies who are liable to pay tax to the central authorities. In addition to this as per new rules, the GST related taxes are required to be reported in the income tax returns which will keep a complete check on both taxes; Income tax and GST returns.
Abhishek Jain, the partner, EY, tried to draw attention towards the reunion between company Financials and GST returns in the GST annual return.
The seriousness of the agenda on Taxes could be predicted as the Government has now started matching the GST paid on the imported goods and the one disclosed in the GST returns. Those businesses are now being notified which have differences in the data provided and that in GST returns. The same is the scenario with the revenue department and correct and genuine data are now being shared.
Hence all the issues related to GST returns and Tax returns are now being seriously solved and a clutch is maintained for the authenticity of the Data. Abhishek A Rastogi, the partner at Khaitan & Co., With the finance minister Arun Jaitley added that all the actions required, would be taken to remove the problems related to GST and taxation and circulars and notifications would come in action whenever required.
