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Government may seek explanations for discrepancy in Income Tax, GST returns

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In a bid to boost measures against tax evasion, the government may ask taxpayers to explain any discrepancies between their income tax and GST returns. For this, the authority is looking to add a section in annual GSTR 9 form, reported Mint.

GSTR 9 is a return to be filed once a year by registered taxpayers under GST (Goods and Services Tax). It is a detailed collation of sales and purchases made during the year by a company under the three different tax heads — central GST, state GST and integrated GST.

In talks with the publication, an official familiar with the matter shared the information. Moneycontrol couldn’t independently verify the report.

According to the report, the deadline to file income tax returns is September 30 and GST annual return is December 31. Ahead of filing the ITR, the law requires firms to audit their results. This audited financial statements along with a reconciliation statement needs to be mentioned in the GST Return.

In the run-up of the last date, the form is in process to be put into place. In the final form drafted for the annual GST return, the taxpayers can be asked to disclose details of their income tax declaration and explain the discrepancy, if any, said the official.

Source by:- moneycontrol