Responding to GST Notices
insolvency and bankruptcy act
Introduction to Insolvency and Bankruptcy in India
May 21, 2018
7 Reasons Why ELSS has Become Popular for Saving Tax
May 25, 2018

What to do When you get GST Notices?

As GST regime enters new financial year, department’s lenient approach to non-compliance under GST comes to an end. And, it’s high time, when taxpayers (GST) should be genuine and serious about filing accurate information in returns to the department as the investigation wing of GST department has started sending notices. There can be multiple reasons as to why notices are sent to entities or taxpayers. This article will help you know how H&R Block can assist you in avoiding GST notices and filing accurate returns.

Reasons for the GST Department to send Notices

Following are the main 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 have not filed their GST Return within the time limit asking them to pay the taxes due and interest as penalty. The department has also initiated efforts to make taxpayers file returns within the deadline by sending notices to non-filers through emails asking them to submit returns within 3 days of the expiry of the deadline.

2) Mismatch in GST Returns

On the directions of GST council meeting held in March to analyse data gaps between various GST returns, the department started sending various notices that are discussed below:

  1. Various scrutiny notices have been issued to taxpayers to explain discrepancies in monthly summary return (GSTR 3B) and outward supply details (GSTR 1) for the same period. This is sent to verify the payment of taxes for all outward supplies made. Notice sent to companies mentioned, “If no explanation is received by the aforesaid date, it will be presumed that you have nothing to say in the matter and proceedings in accordance with law may be initiated against you without making any further reference to you in this regard”.
  2. Although reconciliation has not been started by the government, but the department has started sending notices to seek explanation for discrepancies in GSTR 3B and GSTR 2A. It is essential to ensure that credits claimed by businesses pertains to taxes actually paid by suppliers and hence no loss to government treasury on this account.

3) Verifying Pre-GST Claims

Department also initiated sending notices to taxpayers asking them to provide documents in support of transitional credit claims filed by them. They requested to furnish the copy of Tran 1 return along with stock statement and copies of purchase documents.

Assistance provided by earlyGST

  • earlyGST by H&R Block helps taxpayers or entities to file GST Returns before due date effectively and efficiently. We validate maximum information to be filed in the returns like GSTIN, HSN code, tax rates and its calculation, the applicability of type of supply i.e intra-state and inter-state etc.
  • H&R Block also helps taxpayers in preparing GSTR 1 i.e. Return for outward supplies and reconcile it with GSTR 3B so that tax liability shown in GSTR 3B matches with the final return for outward supplies (GSTR 1).
  • As we all know, Input Tax Credit Reconciliation (GSTR 2A and GSTR 3B) under GST is very crucial to avail maximum credit. This whole process involves a lot of time and experienced professionals to coordinate with vendors for altering returns filed by them. Therefore, we provide reconciliation as a service and help taxpayers resolve mismatches in the invoices filed by supplier which are auto-populated in GSTR 2A and invoices recorded in purchase register. It will be very difficult and tedious task for companies to deal with issues like high volume of invoices, timing differences in recording of invoices, invoice number mismatch etc. An easy solution can be to take help of experts who have tools and workforce to take care of your reconciliation and avoid departmental notices and ultimately scrutiny assessments.

GST notices can be very troublesome for every taxpayer but we ensure that you can avoid them with smart GST solutions provided by our certified team of experts.

  • Share: 
Priya Goel
Priya Goel
Priya is a Chartered Accountant working in the field of Indirect Taxation (GST) since the last 2.5 years. She has handled various clients in the manufacturing and service sectors and has represented them in audit and scrutiny cases. She has also assisted her team at H&R Block as a Business Analyst for the GST software. As a Tax Researcher, she aims to provide her team with all latest notifications, circulars, amendments and her clients with her expertise in planning and managing tax related issues in the most efficient and structured manner

3 Comments

  1. Jayesh Lalwani says:

    URGENT
    Hey there!
    I’m a distributor, I need consultation regarding GST scrutiny notice.

    If your team provide services in personal cases, please do revert as soon as possible.

    Thanking you in anticipation.

    • H&R Block India says:

      Thanks Jayesh for approaching us with your query. We would have to go through the notice to understand what is the assessing officer query and accordingly we can suggest an appropriate reply. We will have one of our tax experts reach out to you on your e-mail ID to take this ahead.

  2. Anil Thakur says:

    Hi we got Notice from GST dept. due to diff in 3B & 2A. We have claimed input on import as per Bill of entry but the same not reflecting in form 2A. Please assist how it cab be rectify.
    Anil Thakur
    9999988575

Leave a Reply

Your email address will not be published. Required fields are marked *