• Notification Date: 26-10-2023
• Notification No: N/A

India Inc likely to Receive more GST Notices in the Upcoming Weeks

The tax man may come knocking at the doors of more businesses for payment of goods and services tax. India Inc, which has already been sent several GST notices, should prepare for more such notices in the coming weeks.  

Experts note that with the limitation period for such notices for 2018-19 set to end on December 31, the GST department is likely to issue more such notices.   

Bimal Jain, Founder of A2Z Taxcorp LLP, points out that the large number of GST notices for non-fraud cases sent to registered persons for FY18, vaguely demand on the basis of comparison of GSTR 1, GSTR 2A and GSTR3B with GSTR 9 and GSTR 9C, on or before the September 30 deadline, which was the limitation period for issuance of show cause notices under section 73 of the CGST Act for FY18.    

Such registered persons now have no option but to respond by December 31 in order to avoid any ex-parte order, he says. 

“Further, more notices are likely to be issued over the next few months ahead of December 31, 2023, by when the limitation period for issuance of show cause notices for all non-fraud cases for FY19 will come to an end,” Jain said.  

According to sources, companies have been looking at various options after getting GST notices and industry and trade associations are also understood to be reviewing whether they should send representations on this to the government.  

“These notices belie efforts at ease of doing business as companies are simply being sent notices for payment of GST dues in order to meet the deadline of September 30,” said another tax expert.  

Earlier this week, FMCG and ayurvedic products major Dabur India informed the stock exchanges that it has received a GST demand notice of Rs 320.6 crore. The company will challenge the same based on strong merits by filing its reply before the relevant authorities.   

While the online gaming sector is already under scrutiny of GST authorities, some other firms in sectors such as insurance and automobiles have also received GST notices in the last few months.   

Life Insurance Corporation of India had on October 11 said it has received a GST notice for paying tax at a lower rate of 12 per cent instead of 18 per cent. The demand order cum penalty notices for 2019-20 amounts to nearly Rs 37,000 crore.    

Similarly, auto major Maruti Suzuki had also recently received a show-cause notice from the GST authority proposing to demand interest and impose penalty, besides appropriating tax already paid, amounting to Rs 139.3 crore for the period of July 2017 to August 2022.