The Central Board of Direct Taxes (CBDT) has decided to enter into a memorandum of understanding(MoU) with GST Network(GSTN).
The MoU will allow income tax department to share details including sales and profits that businesses have reported in their income tax returns with GSTN to scale up scrutiny and check tax evasion.
This move will allow direct and indirect tax authorities to zero in on discrepancies in the information that business have disclosed in their respective tax return forms and arrest tax evaders. Further,the MoU will also include modalities of exchange of data, maintenance of confidentiality and mechanism for safe preservation of data.
CBDT is a statutory authority that functions under the Central Board of Revenue Act,1963.It is a part of the Department of Revenue in the Ministry of Finance.It provides inputs for policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the Income Tax Department.
The GST Network(GSTN) is a non-profit organization.It has been established to manage the entire IT system of the GST portal.This portal is used by the government to track every financial transaction and it also provides taxpayers with all services from registration to filing taxes and maintaining all tax details.
The GSTN was initially held by Central Government with 24.5% of shares while the state government held 24.5%.The remaining 51% were held by non-Government financial institutions.However,later it was made a wholly owned government company having equal shares of state and central government.
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