Arjuna (Fictional Character): Krishna, the Festive season has just begun. Recently, the festival of Rakshabandhan was celebrated in India with great enthusiasm. But how and when will the GST Taxpayer celebrate Rakshabandhan. In other words, to check whether input tax credit matches with GSTR-2A and output taxes match with GSTR-3B, GSTR-1, E-way Bill, and also with books?

Krishna (Fictional Character): Arjuna, Rakshabandhan is the festival of the close relationship between brother and sister. At the time of this festival, a sister ties rakhi on her brother’s wrist, and in exchange, the brother promises to protect her. Like this, in GST sale/purchase-related reconciled or unreconciled input tax credit is necessary to fulfill the promise between the seller (brother) and purchaser (sister). Purchases should be matched with GSTR-2A and sales with GSTR-3B, GSTR-1, and E-way bills should also be matched.

Close up top view of female hands tying colorful rakhi on her brother’s hand with brass dish full of puja accessories in selective focus against white background on Raksha Bandhan Festival

Arjuna (Fictional Character): Krishna, how should the taxpayer face the notices being issued by the GST Department through ASMT-10 in relation to purchases/sales?

Krishna (Fictional Character): Arjuna, Primarily, a taxpayer should reconcile the purchases with sales shown by the seller i.e. Party wise reconciliation of all purchase transactions with GSTR-2A should be made.

Arjuna (Fictional Character): Krishna, how can the taxpayer be protected from the notices issued by the GST Department through ASMT- 10?

Krishna (Fictional Character): Arjuna, if the taxpayer provides exact information as per the 15 parameters given by the GST department then only the taxpayer can be protected.

Arjuna (Fictional Character): Krishna, what if the taxpayer does not reply to the notice or if the GST department is not satisfied with the reply furnished in ASMT- 11?

Krishna (Fictional Character): Arjuna, if the taxpayer does not reply to the notice or if the GST department is not satisfied with the reply furnished in ASMT- 11 then further notice shall be issued to the taxpayer and he shall also be liable for the penalty.

Arjuna (Fictional Character): Krishna, what should the taxpayer learn from the notices being issued by the department?

Krishna (Fictional Character): Arjuna, prior to the notices being issued by the GST department, the seller and buyer as a relation between brother and sister should furnish all the information of ITC as per GSTR-2A and also reconcile GSTR-3B with GSTR-1 and E-way Bill. Then only the relationship between buyer and seller will continue to be like brother and sister.

Author Bio

Qualification: CA in Practice
Company: R.B. Sharma and Co
Location: Aurangabad, Maharashtra, India
Member Since: 27 Jan 2018 | Total Posts: 339
1. Vice-Chairmen of WIRC of ICAI for the year 2015-2021. 2. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 3. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNITI” published in Lokmat on every Monday. Till date 335+ weekly articles ha View Full Profile

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