We are all aware of the system generated DRC 01 notices issued by the State Authorities of Telangana in November 2021 (https://taxguru.in/goods-and-service-tax/gst-perils-tax-administration-algorithms-notices.html). It appears that the State of Andhra Pradesh has joined the bandwagon. Recently, many taxpayers in Andhra Pradesh, falling under the administrative jurisdiction of “State Tax authorities” were issued system generated notices in Form ASMT 10 for the period 2017-18 to 2022-23 (Six Financial Years) which can be downloaded from their dashboard on GST portal. The taxpayers have to respond within one month, else it will be presumed that they have nothing to say, and proceedings will be initiated in accordance with the law.
All these notices are system generated, with liabilities on account of discrepancies arrived based on some equations and comparisons from the GSTR 1, GSTR 3B and GSTR 9 returns filed by the taxpayers. The basis for the tax amount in ASMT -10 has been mentioned in the Annexure to the ASMT -10. This Annexure has 17 different “tables” drawing the comparison statements. However, it appears that these equations and algorithms are written without basic understanding of the information provided in the returns, causing a lot of inconvenience to the taxpayers as they have to file explanations to these notices for six-year period in 30 days’ time for no fault of theirs.
The following are some issues where flawed logic has been applied.
