CGST Section 158A — Consent based sharing of information furnished by taxable person

CGST Act · Consent based sharing of information furnished by taxable person

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Section 158A of the CGST Act, 2017 governs Consent based sharing of information furnished by taxable person. It provides the core statutory basis, outlining the essential legal principles, rights, and liabilities under Indian indirect tax law. Section 158A GST: Consent based sharing of information furnished by taxable — eligibility, conditions, case laws and compliance impact under Indian tax…

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Plain-English Explanation

Plain English Summary

Section 158A of the CGST Act introduces a mechanism for sharing certain GST-related information of registered taxpayers with other systems, but only with their explicit consent. This aims to facilitate easier access to information for various purposes, but with safeguards to protect taxpayer data.

This section applies to all businesses registered under GST. It came into effect on October 1, 2023, as part of the Finance Act 2023. Before this date, sharing such detailed information was either restricted or required more cumbersome procedures. Now, with consent, sharing becomes streamlined for specified data points.

Here's a breakdown of the key conditions and exceptions:

Consent is Paramount: The linchpin of this section is consent. The government cannot share your GST data with any other system without your explicit permission. This is designed to protect the confidentiality of your business information.
Information That Can Be Shared (with consent):
- Details from your GST registration application (Section 25 of the CGST Act). This includes information like your business name, address, PAN, bank details, and details of directors/partners.
- Details from your GST returns (GSTR-1, GSTR-3B, GSTR-9, filed under Sections 39 & 44 of the CGST Act). This includes information about your sales, purchases, tax liability, and input tax credit.
- Invoice details uploaded on the common GST portal for generating e-invoices.
- Details of outward supplies reported in GSTR-1 (under Section 37 of the CGST Act).
- Details uploaded for generating e-way bills (under Section 68 of the CGST Act).
- Any other details prescribed by the government via notifications (currently none specified).
Who Needs to Consent?
- The supplier (the business making the supply) must consent to the sharing of details from their registration application, returns, invoice data, and outward supply details.
- The recipient (the business receiving the supply) must consent only when the shared information includes their identity. For example, if the government intends to share details from invoices where the recipient's GSTIN is mentioned with a lending institution, the recipient's consent is also required.
Council Recommendation: The Goods and Services Tax (GST) Council must recommend which other systems can receive this shared data. The government then notifies these systems. This ensures that the sharing is controlled and only happens with trusted and vetted platforms.
Government Notification: The government will specifically notify which systems will have access to the data and the manner and conditions of sharing.
No Liability for Government or Portal: The government and the common GST portal are protected from any legal action related to liabilities arising from sharing information under this section. However, it clearly states that the liability to pay tax on the relevant supply or as per the relevant return remains unchanged. Sharing data does not absolve you of your tax obligations.

Practical Examples for Business Owners:

Loan Application: Imagine you are applying for a loan from a bank. The bank might be notified by the government as an approved system to receive GST data with consent. With your consent, the GST portal can directly share your GST return data with the bank, eliminating the need for you to manually provide these documents.
Credit Rating: Similarly, credit rating agencies might be notified systems. If you want a credit rating, you can consent to share your GST data to speed up the process and improve the accuracy of the rating.
Supply Chain Financing: Platforms offering supply chain financing might want to verify the authenticity of invoices. With the consent of both the supplier and the recipient (if recipient identity is shared), the platform can access the relevant invoice data.

Important Considerations:

Form and Manner of Consent: The specific form and manner of obtaining consent will be prescribed by the government through rules or notifications. Watch out for these details, as they will dictate how you give your permission.
Revocation of Consent: It is expected that there will be a mechanism to revoke consent at any time. The specifics of this revocation process are yet to be prescribed.

In conclusion, Section 158A is a significant step towards data sharing in the GST ecosystem, promoting ease of doing business. However, taxpayer consent is at the heart of this provision, ensuring data privacy and security. Businesses should carefully evaluate the implications and benefits before providing consent for data sharing.

(1)All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section (3), not be disclosed.

(2)Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall, save as otherwise provided in sub-section (3), require any officer appointed or authorised under this Act to produce before it or to give evidence before it in respect of particulars referred to in sub-section (1).

(3)Nothing contained in this section shall apply to the disclosure of,-

(a)any particulars in respect of any statement, return, accounts, documents, evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal Code or the Prevention of Corruption Act, 1988 (49 of 1988), or any other law for the time being in force; or

(b)any particulars to the Central Government or the State Government or to any person acting in the implementation of this Act, for the purposes of carrying out the objects of this Act; or

(c)any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demand; or

(d)any particulars to a civil court in any suit or proceedings, to which the Government or any authority under this Act is a party, which relates to any matter arising out of any proceedings under this Act or under any other law for the time being in force authorising any such authority to exercise any powers thereunder; or

(e)any particulars to any officer appointed for the purpose of audit of tax receipts or refunds of the tax imposed by this Act; or

(f)any particulars where such particulars are relevant for the purposes of any inquiry into the conduct of any officer appointed or authorised under this Act, to any person or persons appointed as an inquiry officer under any law for the time being in force; or

(g)any such particulars to an officer of the Central Government or of any State Government, as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty; or

(h)any particulars when such disclosure is occasioned by the lawful exercise by a public servant or any other statutory authority, of his or its powers under any law for the time being in force; or

(i)any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under this Act against a practising advocate, a tax practitioner, a practising cost accountant, a practising chartered accountant, a practising company secretary to the authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary, as the case may be; or

(j)any particulars to any agency appointed for the purposes of data entry on any automated system or for the purpose of operating, upgrading or maintaining any automated system where such agency is contractually bound not to use or disclose such particulars except for the aforesaid purposes; or

(k)any particulars to an officer of the Government as may be necessary for the purposes of any other law for the time being in force; or

(l)any information relating to any class of taxable persons or class of transactions for publication, if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.

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Frequently Asked Questions

What is CGST Section 158A about and what type of information can be shared under this section?

CGST Section 158A allows for the sharing of information furnished by a taxable person with other systems or entities, provided the taxable person gives their explicit consent. This includes information submitted in GST returns, registrations, and other forms filed on the GST portal. This sharing can facilitate processes like loan approvals, vendor verification, and other legitimate business needs.

How does a taxable person provide consent for sharing their information under Section 158A?

The manner of providing consent is prescribed under Rule 163 of the CGST Rules, 2017. The consent will be obtained electronically through the GST portal. The exact mechanism (e.g., OTP-based authentication, digital signature) will be specified on the portal itself when the feature is enabled. The consent will be time-bound and specific to the purpose for which it is being granted.

With whom can the information of a taxable person be shared under Section 158A?

Information can be shared with any system or entity specified by the taxable person in their consent form. This could include banks, financial institutions, government departments, vendors, or other businesses that require the information for legitimate purposes, subject to the limitations as may be notified by the government.

Can a taxable person revoke their consent for sharing information under Section 158A? If so, how?

Yes, a taxable person can revoke their consent at any time through the GST portal. The specific procedure for revocation will be available on the portal. Once revoked, the system will cease to share the information with the previously authorized entity from the time of revocation.

What are the implications of sharing information under Section 158A in terms of data privacy and security?

The government is expected to establish robust security measures to protect the confidentiality and integrity of the shared information. The consent mechanism ensures that information is only shared with the explicit permission of the taxable person. The receiving entity is responsible for maintaining the confidentiality and security of the data according to applicable data protection laws.

Is sharing information under Section 158A mandatory for taxable persons?

No, sharing information under Section 158A is entirely voluntary. Taxable persons are not obligated to provide consent. It's based on their individual needs and preferences.

What are the potential benefits of using Section 158A for businesses?

Section 158A can streamline various business processes. For example, it can expedite loan applications by allowing banks to directly verify GST compliance information. It can also simplify vendor onboarding and verification processes, reducing paperwork and administrative burden. Furthermore, it helps in promoting ease of doing business by allowing for faster access to relevant information.

Key Conditions & Requirements

Condition	Details
Details Shared	Particulars from registration application (section 25), returns (section 39, 44), invoice preparation uploads, outward supply details (section 37), and document generation uploads (section 68) on the common portal; and other prescribed details.
Consent Requirement	Consent must be obtained from the supplier for sharing details furnished under clauses (a), (b), and (c) of sub-section (1).
Recipient Consent (Limited)	Consent must be obtained from the recipient for sharing details furnished under clause (b) of sub-section (1), and under clause (c) of sub-section (1) only where such details include identity information of the recipient.
Manner and Conditions	Sharing of details is subject to the manner and conditions as may be prescribed.
Council Recommendation	Sharing of details requires the recommendations of the Council.
Notification by Government	Details may be shared by the common portal with such other systems as may be notified by the Government.
No Liability on Government/Portal	No action shall lie against the Government or the common portal with respect to any liability arising consequent to information shared under this section.
No Impact on Tax Liability	Sharing of information under this section shall have no impact on the liability to pay tax on the relevant supply or as per the relevant return.

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Amendment History

Enforced w.e.f. 1st July, 2017 .

No numbered amendments recorded for this section.