Reasons for the GST Department to send Notices

Following are the primary reasons why the department has recently sent notices to the taxpayers:

1) Default in Filing GST Returns

Revenue authorities across the country have started sending notices to the taxpayers who haven’t filed their GST return among the cut-off date asking them to pay the taxes due and interest as a penalty. The department has additionally initiated efforts to make taxpayers file returns within the point in time by sending notices to non-filers through emails asking them to submit returns within three days of the expiration of the deadline.

2) Mismatch in GST Returns

On the directions of GST council meeting held in March to analyze information gaps between varied GST returns, the department started sending various notices that are mentioned below:

Various scrutiny notices have been issued to taxpayers to elucidate discrepancies in monthly outline return (GSTR 3B) and outward supply details (GSTR 1) for the identical period. this is often sent to verify the payment of taxes for all outward supplies made. Notice sent to corporations mentioned, “If no clarification is received by the said date, it’ll be presumed that you just have nothing to mention in the matter and proceedings in accordance with law is also initiated against you while not creating to any extent further reference to you during this regard”.

Although reconciliation has not been started by the govt., however, the department has started sending notices to seek clarification for discrepancies in GSTR 3B and GSTR 2A. it’s essential to make sure that credits claimed by businesses pertains to taxes really paid by suppliers and therefore no loss to government treasury on this account.

3) Verifying Pre-GST Claims

Department additionally initiated sending notices to taxpayers asking them to produce documents in support of transitional credit claims filed by them. They requested to furnish the copy of TRAN-1 return together with stock statement and copies of purchase documents.

Relativity undertakes large scale processing of GST data for our enterprise clients. Be it timely and accurate filing of returns to undertaking reconciliation activities. Please reach out to sales@relativity.co.in for more information.