GST officers have started sending scrutiny notices to companies whose tax payment did not match the final sales return after revenue authorities detected underpayment of GST by about 34 percent, a source said. As per an analysis was done by the revenue department in March, 34 percent of businesses paid Rs 34,400 crore less tax between July-December while filing an initial summary return (GSTR-3B).
These 34 percent of the businesses have paid Rs 8.16 lakh crore to the exchequer by filing GSTR-3B, whereas analysis of their GSTR-1 data show that their tax liability should have been Rs 8.50 lakh crore.
In one notice issued by Gujarat GST commissionerate on May 4, taxpayers have been asked to explain the reason for “discrepancies” in return GSTR-3B and GSTR-1 for October-December period by May 14.
Tax experts said that GST law provides for 30 days time to be given to taxpayers for replying to scrutiny notices, however, in the said case only 10 days time has been granted.
EY Partner Abhishek Jain said the activity of data analytics at the end of revenue authorities has commenced with various players receiving notices, seeking clarifications on differences between GSTR-1 and GSTR-3B as well as GSTR-2A and GSTR-3B.
The government has collected over Rs 7.41 lakh crore as GST in last fiscal. However, there were concerns that due to the absence of anti-evasion measures there might have been leakages in tax revenue.
The revenue department has analyzed the Goods and Services Tax (GST) returns data filed by over 51.96 lakh businesses during July-December, 2017. The indirect tax reform GST was rolled out from July 1, 2017.
The data analysis showed only 16 percent of the summary sales returns under GST matched with the final returns till December 2017.
It also showed that there was excess tax payment of Rs 91,072 crore by 49.36 percent of businesses registered under GST between July-December. While they have paid Rs 6.50 lakh crore as GST, the GSTR-1 filed by them shows that their liability should have been Rs 5.59 lakh crore.
