25 Jan
MAJOR REASONS FOR GST NOTICE FROM GST DEPARTMENT
MAJOR REASONS FOR GST
NOTICE FROM GST DEPARTMENT
What are the main reasons for getting GST notice?
Important tips for handling instructions from the GST
department?
What are the consequences of ignoring GST notices?
Due to higher GST tax evasion and lower GST revenue, the
Government of India has tightened the GST compliance check. Frequent notices
are sent for a variety of reasons, including tax evasion, non-compliance with
rates, late files, missing, incorrect receipts, e-way bill mismatch and
non-payment.
It is important to understand the many suggestions that
corporations or professionals may receive, as well as their timing, consequences,
and the tax authorities' response time.
WHAT ARE THE MAIN
REASONS FOR GETTING GST NOTICE?
There are several reasons why a GST registered taxpayer may
receive a GST notice; Some may be due to non-compliance, some may be due to
regular audits by tax authorities; As a result, not all suggestions are
serious.
Below are the top ten reasons to get GST notices.
1.
The GSTR 2A report on the GST portal and the
side of the purchase (Incoming) do not match in the invoice
2.
The most common reason is non-filing or delay of
GST return.
3.
Cancellation request for closed GST number.
4.
Incorrect input tax credit claim in GST return
5.
Non-payment of taxes
6.
GSTR1 does not match the details in invoice and
e-way bills
7.
Input tax credit refund
8.
Lack of GST registration even if the turnover
threshold is exceeded.
9.
(Profiteering) High GST rates apply on sales
10.
Incorrect documents or insufficient documents at
the time of GST registration.
IMPORTANT TIPS FOR
HANDLING NOTICE FROM THE GST DEPARTMENT
We've compiled a list of the top ten tips on how to handle
notice from the GST department
1.
Identify whether the notice has come from
Central GST Department or State GST Department. If the notice is sent by CGST,
it must include DIN; otherwise, the GST notice is invalid.
2.
Check whether the notification was issued online
or offline. Check to see if the internet number listed at the top left of the
notice has been issued electronically.
If it was sent to you by email, you should only reply to it
online.
3.
Be sure to check the notice deadline. You will
be able to respond to the GST notice to the company within the deadline set in
the GST notice and if you are unable to do so, request a written extension from
the authority. Reasons for expansion should be relevant and not common.
Examples of common reasons are unavailability of accountants or "untimely
processing of documents".
4.
If you are submitting your response to the GST
officer's office, you should make sure you get a receipt from him or her.
5.
It is important to answer the exact questions
asked in the notice. Despite requesting something completely different,
businesses often respond differently.
For example, the company must respond to discrepancies
between e-way bill data vs. GSTR 3B and the available ITC.
Instead of giving a proper explanation for the discrepancy
amount, the business responded by stating that the ewe bill was not necessary
because the value of the bill was less than the threshold amount and an e-way
bill was also created in case of currency distribution.
6.
Always show the scheduled date for your personal
hearing. If AR appears on your behalf, make sure that his name is updated on
the GST portal.
He or she must have authorization from you, along with proof
of his or her ID. You should ask AR to make a statement only when absolutely
necessary and only respond to inquiries when he or she is sure of the answers.
7.
Stay in touch with the GST department if
possible. When presenting your case, speak politely and nicely to the officer.
Your claims and arguments must be supported by evidence relevant to the issue.
Even if you know you're right and the authorities are
putting together some different facts, don't be upset. Request that he/she post
your points on the note page.
8.
Always sign the note page when you appear in
person or when you are asked to do so.
9.
Never be afraid to ask for information about the
allegation made in the Relied upon document (RUD), calculation sheet and notice
from the officer.
10.
If you feel that you cannot address the notice
yourself, seek advice and suggestions from a knowledgeable GST expert and
reputable GST consultant.
All of these processes will make your notice experience as
easy as possible and protect your organization from various problems.
WHAT ARE THE
CONSEQUENCES OF NEGLECTING TO RESPOND TO GST NOTICES?
If a GST registered taxpayer receives a notice, he or she
must act to respond to it; otherwise, the consequences can be serious and
include any of the following.
1.
Recovery of tax liabilities directly from the
bank (this is the scariest part)
2.
Denial of GST refund
3.
Property auction
4.
Confiscation of property
5.
Financial penalties
6.
De-registration of GST
7.
Denial of new GST registration
8.
In all the above cases, the penalty will be
levied for late filing / non-payment / misrepresentation, in addition, interest
will be charged on the GST tax payable.
For inquiries, or for more
details. Please contact santoshpatil@alltaxfin.com
Disclaimer: The content of this
post is not considered commercial or legal advice, we are not responsible for
any damage caused by your access to the location content and should not rely on
or use it as an alternative to legal advice. A lawyer professional in your jurisdiction.
Alliance Tax Experts is one of the largest Tax & Company registration
compliance services platforms in India, committed to helping people start and
grow their businesses. For any queries, help or feedback you can contact
santoshpatil@alltaxfin.com or call 9769201316 or WhatsApp.
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