Ayush
The GST department is actively monitoring taxpayers' income using Form 26AS, AIS, and IT Returns to detect tax evasion which shows a coordinated effort between the GST and Income Tax departments.
Objective
To identify mismatches between declared turnover in GST and reported income in ITR.
Incidents Highlighting How the GST Department Actively Monitoring
Case 1: Pani Puri Seller from Tamil Nadu Received GST Notice
Key Takeaway: The GST department is tracking digital payments (UPI, PhonePe, Paytm, GPay, etc.) and linking them to potential GST liabilities.
Case 2: GST Notice Due to Mismatch in 26AS and GST Portal
Key Takeaway: The GST department is matching TDS data from Form 26AS with GST returns to identify undeclared income.
Case 3: GST Notice Based on Income Discrepancy in 26AS
Key Takeaway: The GST department is using Form 26AS data (TDS details) to compare with GST turnover, ensuring all taxable supplies are properly reported.
Points to Remember while Reporting
- Do not report turnover more than Rs.20 lakh in IT Return if unregistered in GST.
- If you are unregistered in GST, then restrict UPI payment up to 40 lakh in case of goods and 20 lakh in case of service.
- Never over-report turnover in ITR for say loan purposes.
Taxpayers must ensure accurate reporting across GST and IT returns to avoid compliance issues.
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