New Delhi, May 1 (KNN) The Income Tax Department is going to share data with the GST Network (GSTN) on important financial parameters, as the authorities seek to plug loopholes and nab tax evaders.

This move will enable authorities to identify under-reporting or non-reporting of income.

Income tax officers and GSTN, the company that handles the information technology of the new indirect tax regime, will also decide on the modalities for "automatic" and "spontaneous" exchange of data besides the "request-based" data exchange.

The principal director general of I-T (systems) would enter into a memorandum of understanding (MoU) with GSTN to facilitate the process of furnishing information, according to an order by the Central Board of Direct Taxes (CBDT).

"While furnishing the information, the specified income tax authority shall form an opinion that sharing of such information is necessary for the purposes of enabling the specified authority in GSTN to perform its functions under the goods and services tax (GST)," the CBDT said.

Exchange of data between I-T and GST authorities would mean that the tax authorities will now reconcile the data sets reported by businesses in income tax returns (ITRs)vis-vis annual GST returns.

 The important financial fields on which request-based data exchange will take place include the status of filing of ITR, turnover, gross total income, turnover ratio, GTI (gross total income) range, turnover range and any other field which will be decided by the authorities concerned, said CBDT

Rolled out from July 1, 2017, GST has ensured centralized return filing system where businesses have to report their sales along with input tax credit details.