On 1st May, 2019, Central Board of Direct Taxation (CBDT) and Goods and Services Tax Network (GSTN) signed an agreement to share data in order to nab tax evaders and reduce black money generation.
The income tax (I-T) department will share key financial information, including status of I-T return filings, turnover of business, gross total income, and turnover ratio among others with GSTN, the information technology backbone of the two-year-old indirect tax regime.
Besides, the two sides will decide on the modalities for automatic, spontaneous and request based exchange of data. The move will allow the I-T department to verify the information filed by businesses in income tax returns, compared to the annual GST returns.
