GST data to be linked with IT returns to check tax evasion

The Modi Government has announced demonetization to eliminate black money and corruption.Opposition parties have criticized the movie and said that the move had destroyed the economy. The government had later introduced GST to reform indirect tax structure and to reduce the complaince burden the GST council has taken some steps.

Recently the Government has revealed how shell companies have utilized fake bank accounts to deposits crores of rupees and the IT department has also sent notices for 18 lakh people and demanded their explanation regarding the suspicious deposits.

The RBI in its internal report has revealed the same that nearly 1 -2 lakh crore deposits were suspicious. Currently, the government has intensified the steps to crackdown black money as a part of this the government may link the data collected from GST with income tax returns of the companies.

Currently, many companies evade taxes by not showing true income in their income and they escape both indirect and direct taxes.Officials have said that GST is an electronic system and the data can be collected easily using big data analytics which is currently
being used for analyzing bank deposits post demonetizations.

Officials have also set up a database to obtain details of companies income tax, data from credit and debit cars, purchase of property and personal data posted by people on social media. They have also said that this system is efficient because under GST invoice matching is compulsory and whole system of supply chain is integrated.

Sources said that the government may also reduce tax rates to encourage more people pay taxes and GST would ensure transparency and there would be no scope for tax evasion.