Arjuna (Fictional Character): Krishna, why are taxpayers shivering this winter due to GST?

Krishna (Fictional Character): Arjuna, The cold waves of winter have arrived and along with it cold waves in GST seems to be arrived in form of notices , as now-a-days department is continuously issuing notices to the taxpayers for discrepancies observed in the returns filed by them. These notices are making the taxpayers shiver. The most common notices received by the taxpayers are GSTR-3A and ASMT-10.

Arjuna: Krishna, what is GSTR-3A and what action needs to be taken?

Krishna: Arjuna, Notice- GSTR-3A is received by the taxpayers for non-filing of GST returns in GSTR-1 or GSTR-3B or GSTR-4 or GSTR-8.This is issued under Rule 68 of GST Rules.

The taxpayer should file the particular GST Returns for which the notice is received along with late fees for the delay. The Time limit to respond is 15 days from the date of receiving the notice.

Business Acronym GST Goods and Services Tax written on  yellow paper note pinned on cork board with white thumbtack, copy space available

Arjuna: Krishna, what is ASMT-10 and what action needs to be taken?

Krishna: Arjuna, ASMT-10 is scrutiny notice issued u/s 61 of GST Act, intimating discrepancies in GST returns. Following are major 4 discrepancies being conveyed-

  • Mismatch in GSTR-3B and GSTR-1
    • Discrepancies in outward supply is conveyed through this. After matching the differences one can make required Amendments in GSTR-1 (for period 18-19 and 19-20) or take effect of the same in Future GSTR-3B to be filed as required, considering payment of additional tax liabilities, interest etc. if any.
  • Mismatch in GSTR-3B and GSTR-2A
    • Discrepancies in Inward supply is conveyed through this. Reconciliation is cumbersome task, various issues like mismatching of invoice number, differences in values of even decimal amount needs to be seen. Also non uploading of Invoices on portal by the suppliers (GSTR-1) is not in control of the Taxpayers. Taxpayers ITC should not be restricted to that available in GSTR-2A, as ITC is legally allowed on the basis of invoice received if conditions u/s 16 are complied with.
  • Mismatch in GSTR-3B and E-Way Bill
    • Discrepancies in Outward supply is conveyed through this. Matching of this is a tedious task. The major problem being availability of E-way bill data. The e-way bill portal provides for the details of E-way bill uploaded by the taxpayer for only a period of last 6 months that to one needs to export the same in 5 days a month time frame.
  • Mismatch in GSTR-1 and ICEGATE
    • Discrepancies in Outward supply is conveyed through this. This is for the exporters. After matching the differences, one should make required amendments in GSTR-1.

The can be many more issues to come and the same should be along with the reasons in ASMT-11.

Arjuna: Krishna, what lesson one should learn from this?

Krishna: Arjuna, the taxpayers should file the returns properly and in time specified. Department is issuing many notices to the taxpayers for discrepancies. Notices for the period 17-18, 18-19 and 19-20 are being issued but one should note that the taxpayers are still filing annual return and GST audit reports are also yet to be uploaded by many, wherein the rectification of discrepancies have been rectified by taxpayers. This is also the reason taxpayers are shivering due to notices as department is not providing shelter home (time) to save themselves from tax cold.

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