This article discusses GST compliance for service providers eligible for the QRMP scheme up to ₹5 crore turnover. It clarifies why businesses must maintain monthly accounting, tax tracking, and ITC reconciliation despite quarterly filing.
The article discusses how GST authorities are increasingly reversing ITC based on upstream NGTP allegations without proving fraud by the immediate buyer. It highlights judicial views that genuine buyers cannot be burdened with proving unknown upstream transactions.
Section 132 of the CGST Act allows prosecution, arrest and imprisonment in cases involving fake invoices, bogus ITC and tax fraud. The article explains how GST disputes cross from civil tax proceedings into criminal prosecution territory.
The article highlights how Central GST enforcement practices such as repeated summons, searches, and arrests resemble old Customs-style investigations. It argues that excessive enforcement is creating hardship for small taxpayers and weakening confidence in GST administration.
The article explains how editable outward tax fields in GSTR-3B enable suppliers to evade tax payment while genuine buyers later suffer ITC denial and GST notices.
Representation addressed to Union Finance Minister, GST Council and CBIC seeks legislative and administrative relief for bona fide GST recipients facing denial or reversal of Input Tax Credit (ITC) under Section 16(2)(c), Section 41, Rule 37 and Rule 37A of CGST framework.
The article explains how buyers can lose Input Tax Credit even after paying suppliers on time if the supplier fails to deposit GST with the Government.
Explains how Section 16(2)(c) links ITC eligibility to supplier tax payment, causing hardship for bona fide taxpayers even when invoices, payments, and goods are genuine.
The High Court observed that filing GST returns is the statutory mechanism for disclosing tax liability. Failure to file returns while issuing taxable invoices was treated as concealment amounting to suppression of facts.
The Court clarified that an NGTP or non-genuine taxpayer tag is only a risk indicator and not conclusive proof against buyers. Authorities must conduct proper enquiry, examine records, and provide transaction-wise findings before rejecting ITC claims.
