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The notices have been despatched underneath Part 150 of the CGST Act, 2017. The division has requested the taxpayers to file an info return, giving particulars of the explanation for the “quick reporting” of enter tax credit score. ET has seen a few of the notices that had been issued by the GST authorities.
“Brief reporting” occurs when the enter tax credit score within the annual return type, or GSTR-9, is lower than the enter tax credit score claimed within the month-to-month form–GSTR-3B or GSTR 2B. The GSTR-3B is mostly a self-declared abstract of the GST return filed each month, the place taxpayers have to report the abstract figures of gross sales, ITC claimed, and web tax payable. GSTR-2B is an auto-drafted type which supplies eligible and ineligible ITC for every month.
A lot of the notices had been despatched in January this 12 months for the April to November interval of 2023-24.
Companies and specialists say whereas the regulation authorises officers to ask for the knowledge return, many of the notices are despatched in a mechanical manner – with out verifying, whether or not taxpayers have availed the ITC or not – rising compliance burden.
“Some notices have mechanically instructed taxpayers to reverse even unclaimed ITC in GSTR-3B, with none software of thoughts,” Rajat Mohan, government director of Moore Singhi, mentioned, including how can a taxpayer reverse an ITC which is unclaimed.
In a post-budget interview with ET, Central Board of Oblique Taxes and Customs chairman Sanjay Kumar Agarwal mentioned the division can not ignore an ITC mismatch when it reveals up within the system.
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