Businesses with decline receiving gst notices
GST-registered businesses that have reported decline in annual revenue by 20% or more over the previous year have received a flurry of notices over the last few weeks from the tax department.
While notices related to mismatch in declaration between GSTR-3B (summary return) and GSTR-1 (outward supplies detail) were common earlier, the department is now comparing firms’ earning under GST with that of erstwhile service and excise regime.
The notices have asked businesses to produce relevant documents and explain the reasons for decline in sales. The department believes that many such cases could point to possible evasion under the new indirect tax regime. Sources said that the government is sitting on a pile of data that wasn’t available to them before GST. This is further aided by integration of information from Customs and direct tax department. The GST IT system is now throwing up many red flags when tax returns under different tax regimes are compared. more
While notices related to mismatch in declaration between GSTR-3B (summary return) and GSTR-1 (outward supplies detail) were common earlier, the department is now comparing firms’ earning under GST with that of erstwhile service and excise regime.
The notices have asked businesses to produce relevant documents and explain the reasons for decline in sales. The department believes that many such cases could point to possible evasion under the new indirect tax regime. Sources said that the government is sitting on a pile of data that wasn’t available to them before GST. This is further aided by integration of information from Customs and direct tax department. The GST IT system is now throwing up many red flags when tax returns under different tax regimes are compared. more
Viewed by 391
I think Tax dept is taking action only where other relevant data of a particular Co like dispatch based on excise details. is not showing any reduction but only sales data are less. more
Aug 12
Another case of poor implementation, the entire get scheme only helps increase bribes given to officials as they are blatant in demanding cuts for any concession. more
Aug 11
This is okay but why are refunds not being made on time. Genuine business is suffering because of corruption and this is not good for economy in long run. Take action on businessman who are timing the system but do make refunds on time and take action on corruption more
Aug 11
overall industry is facing a downturn in every sector hence GST will be lower and the authorities need to understand the same and should not harass and need to look at it in the right spirit since already these companies are in a bad shape and have to resort to cutting manpower and sometimes even shutting down for some days more
Aug 11
