13 Jan
A BOGUS PURCHASE AND INPUT TAX CREDIT NOTICE IN GST
A BOGUS PURCHASE AND INPUT TAX CREDIT NOTICE IN
GST
A bogus purchase and input tax credit notice is a formal
communication issued by a tax authority, such as the GST department, that a
taxpayer has claimed input tax credit on bogus or fraudulent purchases. Swipe
left to decode in more detail!
A bogus purchase and input tax credit notice can be issued for a
number of reasons, including:
• Taxpayer has claimed input tax credit on purchases not
actually made.
• The taxpayer has claimed input tax credit on purchases
made under fraudulent circumstances, such as using forged invoices or
documents.
• Taxpayer has claimed input tax credit on purchases made
from an unregistered supplier or a supplier not eligible to charge GST.
• Taxpayer has claimed input tax credit on purchases
which were not used for business purposes.
• Taxpayer claims input tax credit on purchases which are
not adequately documented or supported with proper invoices or receipts.
How to handle such notifications:-
• Carefully review the notice and make sure you
understand the reasons for the notice and the specific issues raised.
• Collect relevant documents like invoices, receipts and
other records, which support your claim for the input tax credit.
• Prepare a written response to the notice, addressing
each of the issues raised. In your response, you should provide a clear and
concise explanation of your position, including any relevant facts and
supporting documents.
• Submit your response to the issuing authority by mail
or online, as per the instructions in the notice.
• Keep a copy of your response and all supporting
documents for your records.
It is important to respond to the notice promptly and
professionally, as failure to do so may subject you to further action.
Regards
Alliance Tax Experts
9769201316
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