Over the past months, many businesses in the country have received GST notices. There are around 34% mismatches or less GST payment, concluding the deficit to Rs. 34,400 crores. The taxpayers and firms have been informed about these sort of notices, in the answer of GST returns furnished from July-December 2017.
There are majorly two reasons for the mismatches. Generally, the mismatches are found in input tax credit value and self-declared Goods and Services Tax liability, GSTR-3B summary return and the GSTR-1 details. Further, the mismatches can also occur in GSTR-3B and GSTR-2A figures that is the information of product purchases from the supplier. The second one creates incorrect input tax credit allotment in relation to the actual value paid by the supplier, which results in a reduction in revenue.
The government is trading sternly this time with mandate period of 30 days to answer the notices for all businesses. If the business doesn’t answer before described date, it will be assumed that they have no explanation and proceedings will be begun forwardly. The strict GST procedure levies 18% interest on wrongly claimed input tax credit return.
To avoid such mismatches, the businesses are required to work with GST compliant suppliers. This act will remove the differences between suppliers and business details and eliminate the mismatch in ITC calculations. This will ensure GSTR 2A and GSTR 3B details to be consistent.
It is also necessary to file the returns carefully and avoid any sort of wrong data mentioning. Pay attention to the summary returns of GSTR 3B and final returns of GSTR 1. The high degree of compliance is required to make filing mistake-free by accepting a strategic and systematic manner of maintaining records of payments. The businesses who are maintaining manual records or spreadsheet records, for them it is quite easy to respond such notices in a stipulated time.
Although, the original return furnishing models have also provided way with the GSTR 3B and GSTR 1 to make government easy to maintain compliance in India. Now, with the easy and simplified model, it is a good time to go with the compliance and technology to avoid such notices, hurdles, and mismatches at the end of filing procedure.
