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Thursday, January 27, 2022

Taxmen to give ‘reasonable time’ to explain reasons for mismatch in GSTR-1, 3B

🔴 The Central Board of Indirect Taxes and Customs has issued guidelines on recovery proceedings and said that taxmen would give a “reasonable time” to businesses to explain the reasons for such mismatch.

By: ENS Economic Bureau | New Delhi |
January 10, 2022 4:00:00 am
Central Board of Indirect Taxes and Customs, tax payment, CBIC, input tax credit, Business news, Indian express business news, Indian express, Indian express news, Current AffairsAs per the changes in the GST law effective January 1, GST officers were allowed to directly initiate recovery action against those errant businesses which showed higher sales in monthly return GSTR-1 but under-report it during tax payment in GSTR-3B.

Tax officers will give reasonable time to erring businesses to explain reasons for mismatch in turnover reported in sales return GSTR-1 and tax payment form 3B before initiating recovery action for short payment or non-payment of taxes.

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines on recovery proceedings and said that taxmen would give a “reasonable time” to businesses to explain the reasons for such mismatch.

As per the changes in the GST law effective January 1, GST officers were allowed to directly initiate recovery action against those errant businesses which showed higher sales in monthly return GSTR-1 but under-report it during tax payment in GSTR-3B.

The move was aimed at curbing the practice of fake billing whereby sellers would show higher sales in GSTR-1 to enable a purchaser to claim an input tax credit (ITC) but report suppressed sales in GSTR-3B to lower GST liability. with pti

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