Section 158A was incorporated into the Central Goods and Services Tax Act through Budget 2023. This provision, which is awaiting notification, permits the sharing of taxpayer information from the GST portal, e-way bill portal, or e-invoice portal with other government systems, provided the taxpayer’s explicit consent is obtained. This article explores the details of this new section, its implementation, and its potential effects on various businesses.

What is Section 158A?

Section 158A, formally known as ‘Consent-based sharing of information furnished by a taxable person,’ was introduced by Budget 2023. Its activation, along with associated rules and procedures, is still pending notification. The section is structured into three distinct sub-sections. Subsection 158(1) outlines that the GST Network (GSTN), operating through the GST portal, can share taxpayer information with other officially designated systems, following a predetermined process. This includes data submitted via:

• Applications for GST registration
• Sales data or invoices filed in GSTR-1 or the Invoice Furnishing Facility (IFF)
• Information reported in GSTR-3B
• Details from annual returns (GSTR-9) and reconciliation statements (GSTR-9C)
• Documentation provided for e-way bill generation
• Any additional data submitted on the common portal or other government portals managed by GSTN.

This scope extends to information provided on e-way bill and e-invoicing platforms.

Importantly, this section takes precedence over Sections 133 (Liability of officers and certain other persons), 152 (Bar on disclosure of information), and 158 (Disclosure of information by a public servant). Consequently, any limitations imposed by these three sections are superseded when Section 158A is applicable.

Consent Required Under Section 158A

Subsection 158(2) specifies that the GSTN must secure taxpayer consent under certain conditions. The consent requirements vary based on the type of information being shared:

Information outlined in Section 158A(1), such as data from GST registration applications, sales details in GSTR-1 or IFF, GSTR-3B, annual returns (GSTR-9), GSTR-9C, e-way bill generation documents, or other common/government portal submissions, necessitates the consent of the supplier or seller.

If the identifying details of a recipient or buyer are included in sales data from GSTR-1 or IFF, e-way bill documents, or other portal information, then the consent of the recipient or buyer is required.

Subsection 158(3) clarifies that if a taxpayer incurs any liability as a result of information shared by the GSTN with other systems, neither the GSTN nor the government can be held accountable. Additionally, the act of sharing this information will not alter the tax liability associated with the specific transaction or returns.

When Does Section 158A Come Into Force?

The official commencement date for Section 158A has not yet been declared by the government. Similarly, the specific government systems authorized to receive taxpayer information from GSTN, along with the detailed procedures for sharing, remain unnotified.

The precise format and deadlines for obtaining taxpayer consent are also still to be determined.

Furthermore, the GST portal requires updates to implement this consent-driven information-sharing framework.

Impact of Section 158A on Businesses

The introduction of Section 158A is expected to have significant implications for both taxpayers’ business operations and financial management.

Taxpayers will need to exercise increased diligence to ensure all information submitted on the GST portal is both comprehensive and accurate.

Crucially, this information must align consistently with data reported on other government platforms, including the income tax portal, ICEGATE for import/export activities, the Ministry of Corporate Affairs (MCA) portal, and the Enforcement Directorate (ED), among others.

Inconsistencies across these government portals could lead to adverse consequences for taxpayers, potentially resulting in official notices, investigations, and penalties.