Income tax Dept. finds Rs 12 lakh crore mismatch in Income Tax Return declared in Financial Year 2016
A big reason for not being able to catch such tax evasion is due to the fact that the government has not implemented the invoice-matching feature of GST so far.
The indirect tax department has detected a mismatch of Rs 12 lakh crore between the income declared in income-tax returns (ITR) on account of services and the value of these services declared in the corresponding service tax details in FY16.
The mismatch amount is nearly six times the service tax collected in the fiscal.
A similar exercise is under way for FY17 as well.
It is believed this is also a reason for the shortfall in goods and services tax (GST) collections in FY18 and FY19.
While the government had projected Rs 13.4 lakh crore of GST collections in FY19, it could collect only Rs 11.8 lakh crore.
A big reason for not being able to catch such tax evasion is due to the fact that the government has not, so far, implemented the invoice-matching feature of GST.