GST department monitoring financial transactions Using IT Data

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Executive
8745 Points Joined August 2011

GST department is actively monitoring financial transactions using Income Tax Data

26AS, AIS, and ITR data are used for cross-verification of taxable income and GST liabilities.

Key risk indicators for GST scrutiny are -

  • Digital payments,
  • TDS deductions, and
  • Reported incomes

For more details click here.

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On 16 January 2025 at 15:44 Report
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Master in Accounts & high court Advocate
9157 Points Joined December 2011

The GST department's increased scrutiny of financial transactions using Income Tax data, including 26AS, AIS, and ITR, aims to ensure compliance and detect potential tax evasion.

 Here's a breakdown of the key risk indicators: Key Risk Indicators for GST Scrutiny 

1. *Digital Payments*: High-value transactions, discrepancies in payment data, or inconsistent payment patterns may trigger scrutiny.

2. *TDS Deductions*: Inconsistencies in TDS deductions, non-reporting of TDS, or under-reporting of income may raise red flags.

3. *Reported Incomes*: Discrepancies between reported income in ITR and GST returns, or under-reporting of income, may lead to scrutiny.

GST Department's Data Sources 1. *26AS*: Annual Statement of Taxes Deducted at Source, providing details of TDS, TCS, and other taxes.

2. *AIS*: Annual Information Statement, containing information about various financial transactions.

3. *ITR*: Income Tax Return, providing details of income, deductions, and taxes paid. Implications for Taxpayers

1. *Ensure Accurate Reporting*: Verify that all financial transactions, TDS deductions, and reported incomes are accurately reflected in GST returns and ITR.

 2. *Maintain Proper Records*: Keep detailed records of digital payments, TDS deductions, and reported incomes to facilitate smooth scrutiny.

3. *Conduct Regular Audits*: Perform regular audits to identify and address any discrepancies or inconsistencies.

Conclusion The GST department's increased scrutiny emphasizes the importance of accurate reporting, proper record-keeping, and regular audits.

Taxpayers must ensure compliance to avoid potential penalties and scrutiny.

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On 16 January 2025 at 17:57


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