There is more to FY 2017-18, after you file GSTR 9 - (Keshav R Garg) B.com, FCA, CS, ISA(ICAI), AMP-IIM-A, LLB
There is more to FY 2017-18, after
you file GSTR 9
(Keshav R Garg)
B.com, FCA, CS, ISA(ICAI), AMP-IIM-A, LLB
Now that the time limit for filing of annual return 2017-18
is reaching final stage, most of the taxpayers would have filed their returns.
But what after that. Is it the final step to close FY 2017-18 or still there is
something left. Once you file your annual return, the GST department would
begin its activism. As far as taxpayer is concerned, data from his side will
attain finality after filing of annual return. There shall be no further
opportunity to amend your data. Let’s understand what is there in store for you
and how to tackle it:
1.
Assessment notice from department: If you really feel that FY 2017-18 would be a cake walk
with no accountability , you might be wrong. Revenue department is all set to
bombard you with its notices and inquiries. Once these inquiries start, you must
first check whether the department is authorized to conduct such enquiry or
issue notices. At various junctures, it is seen that the department issues a notice
without any power being given by law. Under these circumstances taxpayer can
even challenge the validity of the notice. Remember notice can only be issued under
the purview of the GST Law and not at the will of the department.
2.
Section 74 cannot be invoked, merely because of difference of opinion: At various instances it has been
found that the department invokes section 74 without even understanding the
circumstances under which such notice can be served. It is only in case of
frauds, misrepresentations and alike cases that the department can go ahead
under section 74. Also the department must prove the intention to commit fraud
at the hands of the taxpayer. Where because the department holds a different
view from the taxpayer, section 74 cannot be invoked. For instance there is dispute
whether a item is eligible for input tax credit or not and there is no certainty
in law, the department cannot levy penalty u/s 74. Therefore as a taxpayer you
should first understand that as to why are you been penalized.
3.
Notice in respect of difference in ITC between GSTR 3B and GSTR 2A: Table 8 of GSTR 9 is something which
as a taxpayer you should be concerned. If you availed more ITC than that
reflected in your GSTR 2A return, you must prepare a detailed working. It is most
likely that automated notices will be served on such taxpayers. Now the
question arises whether such excess claim of ITC is permitted under GST or not.
There are couple of views prevailing 1. That the credit in excess of GSTR 2A cannot
be claimed and 2. That GSTR 2A is not the conclusive proof for Availment of
Input Tax Credit. Though department would go by first view but there has been
various judgments which have favoured the latter view. If you have fulfilled
all the conditions for Availment of Input Tax Credit, I would suggest you to
stick with second option without doing any reversal.
4.
Interest on late deposit of tax: Once your GSTR9 and GSTR9C is filed, the department would
surely work out the interest payable on late deposit of tax with the government.
It has been found that most of the taxpayer has paid the amount which was
retained in their electronic cash ledger, but did not set-off it against the
tax liability. It is most likely that the department would raise the interest
liability which the GST portal had not been doing. You must ensure that you diligently
pay your tax along with interest, otherwise difficult awaits for you in future.
5.
Audit by the GST Department: Once you file your annual return, you must prepare yourself
for departmental audit. Most of the states are rigorously working on conducting
the audits. It is most likely that a large number of taxpayers based upon
various risk parameters will be selected for audit. It is in total contrast to
audit of meager 5% taxpayers which was promised when GST was introduced. The
revenue shortage coupled with booming fake invoice industry has forced the
government to cover as many taxpayers as they can. Provided government has the
suitable infrastructure.
Under these circumstances, it is advisable that taxpayer
should take every precaution before and after filing of GSTR9.
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