GST Department has started sending scrutiny notices to the entities whose tax payment did not match with final sales return. Such step has been taken after the revenue authorities’ detected underpayment of GST by about 34 percent. Besides this, the taxpayers whose GSTR-1 did not match with GSTR-2A, which is an auto-populated purchase return are also receiving scrutiny notices.

As per the analysis done by the Revenue department in the month of March, about 34% of businesses paid Rs 34,400 crores less tax between the Quarter 2 of FY 17-18 while filing initial summary return i.e. GSTR 3B. These 34 per cent of the businesses have paid Rs 8.16 lakhs crores to the exchequer by filing GSTR-3B whereas analysis of their GSTR-1 data show that their tax liability should have been Rs 8.50 lakhs crores. Now, the notices are being issued to explain the reason for “discrepancies” in return GSTR-3B and GSTR-1.

It is important to note that the reconciliation between GSTR-1 and 3B is to essentially verify payment of taxes for all outward supplies made and reconciliation between GSTR-2A and GSTR-3B is to ensure that credits claimed by businesses only pertain to taxes actually paid by the suppliers.

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Bharat Poplani