Indore (Madhya Pradesh): The State and Central GST Departments have started issuing notices on mismatch of tax or input tax credit. They have also started scrutiny of returns from 2017-18.
CA Shailendra Porwal informed about it here on Friday, while addressing a seminar organised jointly by CA Indore Branch and Tax Practitioners Association (TPA). The subject of the seminar was understanding notices and how to respond to them. Key-note speaker of the seminar CA Porwal said in this regard that notice should be taken seriously on receipt.
Many times the department may take ex-parte action if the reply is not given on time.
After the implementation of GST, many changes have been made in it from time to time.
Return forms which were thought of while implementing GST could not come in that form.
Due to all these reasons, if any trader has made a mistake in filing the return, then from 2017-2018 till date, the scrutiny of the returns filed by the traders has been started by the department. Mainly the tax liability shown in GSTR 1 and difference in payment of tax through 3B, non-matching of input tax credit availed by the taxpayer with GSTR-2B, non-matching of turnover and tax shown in the e-way bill with GSTR-3B and GSTR-1 and due to various other reasons, such notices are continuously issued. Other than this, due to late filing of GSTR-3B, interest under Section 50 is also payable if the due amount is paid in cash, which has not been filled in certain cases. For all these reasons, the department is issuing notices after identifying the differences in various returns. Along with the amount of tax, interest and penalty are also being demanded by the department.
He said that on receiving the notice, the taxpayer should first of all study the provision related to it and his records to determine whether the demand issued by the department is correct or not. If the demand is genuine, it should be filled immediately so that penalty can be avoided.
In case of disagreement of the taxpayer with such demand, he should submit his reply along with the necessary form citing relevant provisions.
JP Saraf, while presiding over the programme, said that many times the mistake has been rectified in the subsequent returns by the taxpayer, but without taking cognizance of it, the department is giving notice of the month or period in which the mistake was made. which is wrong. For this, the department should issue a notice only if there is a difference while checking the period of the year.
