AITAF questions sending of scrutiny notices to assessees by GST authorities

The All India Tax Advocates Forum (AITAF) has expressed serious concern over growing trend of sending of scrutiny notices by the GST authorities to asseessees for mismatch between tax payments and final sales return even before the whole process of tax liabilities is completed under the GST rules and regulations.

In a statement, it said assessees are being issued notices to explain mismatches of details in GSTR-1 and GSTR-3B for the same period.

"The authorities issuing such notices fail to appreciate that GSTR-3B requires self assessed detail of tax liability and the ITC whereas in GSTR-1, the assesee is required to give invoice-wise details of sales. Such a notice is highly premature particularly in view of the fact that Forms GSTR-2 and GSTR-3 have been extended indefinitely. Form GSTR-3B is only an interim measure and returns are to be finalized only after filing GSTR-2 and GSTR-3, " said M.K.Gandhi, President AITAF.

Not only this, the assessees are not getting even 30 days time to respond to these notices as mandated under GST law.

Gandhi said under the existing GST rules the tax authorities do not have to take cognisance of GSTR-2A till the process of tax reconciliation is finalised.

Presently only companies have to file GSTR-1 and GSTR-3B. The process of reconciliation between GSTR-2A and GSTR-3B is yet to be finalised by the GST authorities, Gandhi said.

Therefore, Gandhi said, there is no need for tax authorities to send mismatch scrutiny notices at this point in time.

Till the final process of reconciliation is put in place by the tax authorities, sending of scrutiny notices for mismatch in GST returns will cause unwaranted and avoidable harassment to taxpayers, Gandhi said.