Sharing of Information under GST

Under the Goods and Services Tax (GST) law in India, information sharing is a critical component for effective tax administration, enforcement, and compliance. Vide Finance Act, 2023 the Government had inserted a new Section 158A under CGST Act 2017, to provide for consent based sharing of information furnished by a taxable person. The said section became effective from 01.10.2023 vide Notification No. 28/2023-CT dated 31.07.2023. In this article we will discuss the provisions of section 158A and will also discuss how the mechanism of information sharing works under the GST law.

Section 158A(1) of CGST Act 2017 states that the following details furnished by a registered person may be shared by the common portal with such other notified systems;
(i) Information furnished in the application for GST registration.
(ii) Details of outward supplies reported in the GSTR-1 or Invoice Furnishing Facility (IFF).
(iii) Details reported in GSTR-3B.
(iv) Details reported in the annual returns (GSTR-9) and reconciliation statement (GSTR-9C).
(v) Particulars uploaded on the common portal for preparation of invoice.
(v) Document details submitted for e-way bill generation.

Consent Requirement:

Section 158A(2) lays down the condition that such sharing shall be subject to the consent based i.e., the GSTN must obtain the consent of taxpayers.

Consent required from the Supplier & Recipient:

Before sharing any information as mentioned above  the consent is required from the Supplier. However, the recipient's consent is necessary only if the recipient details are disclosed in;

(i) Sales details or invoices reported in GSTR-1 or Invoice Furnishing Facility (IFF) filed

(ii) Document details submitted for e-way bill generation

(iii) Other information furnished on the common portal or the government portals

Liability Protection:

Systems Currently Notified:

(A) Account Aggregator:
Vide Notification No. 33/2023-Central Tax the Government had notified "Account Aggregator" as the systems with which information may be shared by the common portal based on consent under Section 158A of the CGST Act, 2017. Here the Account Aggregator means a NBFC which undertakes the business of an Account Aggregator in accordance with the policy directions issued by the RBI u/s 45JA of the Reserve Bank of India Act, 1934.

(B) Public Tech Platform for Frictionless Credit:

CBIC vide Notification No. 06/2024 - Central Tax had notified the “Public Tech Platform for Frictionless Credit" as the system with which information may be shared by the common portal.

Rules to prescribe the procedure:

In the 50th Meeting of the GST Council which was held on July 11, 2023 it was recommended for the  insertion of rule 163 in CGST Rules, 2017 to provide the manner and conditions of consent-based sharing of information of registered persons available on the common portal with other systems.

Accordingly, vide Notification No. 38/2023-Central Tax the Rule 163 was inserted in CGST Rules 2017 which prescribes the manner of sharing of information by stating that a registered person has to opt for sharing of information. Such sharing of information may be related to information furnished in FORM GST REG-01, FORM GSTR-1 & 3B. The system will obtain the consent of the registered person and communicate the consent to the common portal. The common portal shall communicate the information with this system.

Implications for Taxpayers:

Disclaimer: The information given in this article is solely for purpose of understanding the law. It is completely based on the interpretation of the author and cannot be constituted as a legal advise, the author of this article and Lawcrux team is not responsible for any legal issues if arises on the basis of the interpretation given above.