GST, Income Tax data may be matched to check tax evasion; direct, indirect tax departments join hands

By: |
Published: July 21, 2020 3:01 PM

With the MoU signed between the CBDT and the CBIC, the government bodies can exchange information on request and a spontaneous basis, in addition to the regular exchange of data.

cbdt, cbic, direct tax, indirect tax, ministry of finance The fresh MoU will likely create a landscape for more transparent and holistic information sharing, helping tax authorities to detect incidents of tax evasion.

In order to facilitate smooth transfer and exchange of data including GST, excise, and customs, along with the personal income tax and corporation tax, the departments of direct and indirect tax have today signed a memorandum of understanding. The fresh MoU will likely create a landscape for more transparent and holistic information sharing, helping tax authorities to detect incidents of tax evasion. With the MoU signed between the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC), the government bodies can exchange information on request and a spontaneous basis, in addition to the regular exchange of data, the Ministry of Finance said in a statement.

Both departments have been already sharing information through various existing mechanisms as an MoU was earlier signed between CBDT and the erstwhile Central Board of Excise and Customs (CBEC) in the year 2015. However, since 2015, many important developments such as the introduction of GST, incorporation of GSTN, and change in the nomenclature of the Central Board of Excise and Customs (CBEC) to the Central Board of Indirect Taxes and Customs (CBIC), took place. These new developments have been incorporated in the MoU signed today and the government believes that the MoU will mark the beginning of a new era of cooperation and synergy between the CBDT and the CBIC.

Also Read: Nitin Gadkari’s mantra to uplift very small enterprises; says microfinancing is need of hour

The government further said that a Data Exchange Steering Group has also been constituted, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data-sharing mechanism. Meanwhile, GST intelligence has recently spotted incidents of fraud related to Rs 500 crore by Pan Masala manufacturers. The GST intelligence wing is also reportedly set to check tax evasions by hand sanitiser manufacturers across India.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Kerala has potential to earn $54.7 billion in export revenues by 2024-25: Study
2Former RBI governor Urjit Patel in search panel for Monetary Policy Committee members
3FM Sitharaman pushes large CPSEs to meet half of FY21 capex target by September