Taxpayers these days are running head and toes for their documents which have to submit within 7 days after getting the due noticed from the income tax department.
It complained that the time to furnish the documents is less and is creating an amount of pressure due to the data pile up. It seems very hard for the taxpayers to furnish all the details of transitional credit for claims under GST.
It is said that this stern action by income tax department is based on the suspicious transactions done by the community of taxpayers at large, making IT department to tighten the rules for furnishing the desired documents.
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Also, it is worthwhile for such compliances, as the GST is getting its first year completed and it is very important to collect and prepare a final report of all the 1st year accomplishments of new indirect tax regime of 2017.
According to the notice received it is mentioned that “copies of Cenvatable invoices i.e inputs, input services, and capital goods for the period 01.04.2016 to 30.06.2017.”
As per the requirements of the notice, it is said that there would hundreds of invoice required with detailed supporting documents making the process cumbersome to all the taxpayers seeking transitional credits under GST.
According to a business owner, “We have sought 15 days from the department to comply with the notice as it is physically not possible to gather all these documents without impacting the daily business.”
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The verification process is taken up in hands due to the large-scale fraudulent business transactions and after which the government has deployed top 50,000 assessees in order to analyse the situation of tax compliances.
