- Have any questions?
GST officers will make surprise recovery visits beginning January 1st, according to a new rule.
If your tax burden reported in the necessary form is less than what invoices mentioned in the outbound supply form should draw in January, the government has the authority to send its recovery officials to your premises to collect GST without notice.
According to a gazette notification issued on Tuesday, the relevant clause in the Finance Act of 2021 will take effect on January 1, 2022.
If a company’s yearly turnover exceeds Rs 5 crore, it is required to file two types of returns monthly under the GST system. GSTR-1 and GSTR-3B are the sources of these. The first is a return that reveals invoices for sales, while the second is for stating GST liabilities in aggregate. While GSTR-1 must be reported by the 11th of the month following the transaction, GSTR-3B must be filed by the 20th of the month after the transaction.
If you have a yearly turnover of up to Rs 5 crore, you can file quarterly filings.
If someone has reported invoices totaling Rs 1 crore in GSTR-1 but only declared taxes on Rs 1 lakh in GSTR-3B, the government would be able to deploy officials to his or her business premises starting in January to recover GST on Rs 99 lakh in sales. The government is not compelled to provide notice in this situation.
Related Article…
[pt_view id=”baa39696xe”]
“The government will simply state that your liability existed and that you failed to pay your taxes.” As a result, there is no need to provide you with an opportunity to be heard; there is no need to provide you with notice,” Rajat Mohan, senior partner at AMRG & Associates, noted.
“‘We have the authority to demand immediate payment of taxes, including interest and penalties.” Because these GST forms are intended for self-assessment,’ the government may very well say after this notification takes effect,” Mohan says.
Clubs must also pay GST on money collected from members if it is not used for charitable purposes, according to the Finance Act. This would take effect in the new year as well.
According to Mohan, there are a slew of judgements from various bodies on whether or not GST should be applied on money received by clubs. If the seller does not mention the transactions in his or her GSTR-1 form for the new year, the buyer would be denied an input tax credit for those transactions.