GST--Demand

Validity of Demand on the Basis of Third Party Data

Akash Phophalia

The learned author seeks to examine the issue as to whether demand of tax merely on the basis of figure of receipts shown in the income-tax return is sustainable in law.

1. Introduction

The GST department had powers to call data from third party and on the basis of that data it can proceed according to the details available. We have consistently seen that on the basis of data taken from the income tax department, several notices were issued under service tax law and proceedings were also initiated and concluded. In this article, the author wishes to explain the extent of admissibility of data obtained from income tax department in the proceedings under indirect taxes.

2. Background