MPTLBA & CTPA Highlight Challenges During GST Audit by Officers

A GST expert CA Sunil P Jain mentioned that the traders and the tax consultants are suffering from the issues in CGST departmental audit as towards the GST law various discrepancies are there, and in other cases, it is found even in the departments.

Various meanings are assumed, and the business found it difficult to satisfy the audit officers.

Jain addressed a workshop which is organized by the company of the tax consultants CTPA and MPTLBA, where nearly 200 members took part. The consultants from Indore and the nearby cities were present.

Jain specified that the departmental audit of GST beneath section 65 was run by the CGST department and there was news that the SGST dept will initiate the audit proceedings.

The outcome of that search is that the trader obtains a chance to fix his error within time and these glitches would be prevented in the coming time, also prior to getting the notice of section 73 or 74. There would be a relaxation in the GST penalty provision toward the tax error correction.

Jain mentioned that the council takes the direct action on the grounds of the details obtained by the Directorate-General of Analytics and Risk Management (DGARM) while the board would direct that the officer must choose the precise action while considering the present condition and the method of doing the business.

The trader must release his tax liabilities as per the facts. Anger is there among the traders even the departmental audit being performed beneath section 65, periodically, CGST and, sometimes, SGST or the DGGI again issue a notice of investigation on several problems.

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Jain trusts that for the same reaction the traders must be notified via a letter from the officer issuing the notice and the action must be declined beneath section 6(3).

President of the MPTLBA, Ashwin Lakhotia, specified that there was anger in the business world that the audit action was being performed late by the department and a load of interest at an 18% GST rate to the business in the error correction breaks the back of the whole business class.

The interest is being imposed for the whole 5 years, and the audit must get initiated by choosing the audit cases just post to the yearly returns of the GSTR-9.

If the year would be audited once then in that specified year, no additional action must be chosen by the department. The action should only be taken only when there is a need for that.