In a recent Media statement, the GST department announced that they will soon start analyzing the ITR filed and the MCA reported by businesses to ensure that they are adequately discharging their GST liability. If any variations in Business reported, they start issue the Gst notices.
The department will compare the GST data with ITR and MCA data filed by businesses and issue notices to those that are not compliant.
Under the existing GST rules, businesses with a turnover exceeding of Rs.40 lakhs for manufacturers and Rs.20 lakhs for the service sector must register under GST. This move is part of the government’s efforts to ensure that businesses are complying with GST regulations and accurately reporting their income.
As the GST department will soon start analyzing the income tax returns filed and the MCA reported by businesses to ensure compliance, it is essential for businesses to take proactive steps to avoid receiving a notice. The best way to do this is by reviewing and reconciling your details before filing your year-end GST return with the help of an experienced tax consultant, like Prakasha & Co.
Here are some steps you can take to avoid receiving a notice from the GST:
- Review your ITR and MCA filings: Before filing your ITR return, review your GST returns to ensure that they are accurate and up-to-date. Check for any discrepancies between your GSTR 1, Gstr2A and 3B, with the Trial balance/financial statements and your GST return, and reconcile any differences.
- Keep accurate records: Maintaining accurate records of your financial transactions is crucial to ensure that your GST return is correct. Keep detailed records of all sales and purchases, as well as any input tax credits claimed.
- Seek professional help: Filing your GST return can be a complex process, especially if you are not familiar with the regulations. Seek the help of an experienced tax consultant, like Prakasha & Co, to ensure that your return is accurate and complies with all the regulations.
- File your return on time: Filing your GST return on time is crucial to avoid penalties and legal action. Make sure to file your return before the due date to avoid any issues.
There are several areas where differences may arise between the ITR, MCA, and GST data. businesses may need to focus their review and reconciliation efforts:
- Sales and revenue: Differences in sales and revenue figures reported in the ITR, MCA, and GST data can be a common area of concern. This may occur due to errors in recording sales, different accounting methods used for tax and accounting purposes, or differences in the timing of recognizing revenue.
- Input tax credits: Input tax credits claimed in the GST return must match the purchases recorded in the accounting system. Any discrepancies may arise due to incorrect recording of invoices, missed or lost invoices, or issues with supplier registration.
- Expenses: Differences in expenses reported in the ITR, MCA, and GST data can also be a common area of concern. This may occur due to discrepancies in recording expenses, differences in the timing of recognizing expenses, or differences in accounting methods.
- Capital expenditures: Capital expenditures recorded in the ITR and MCA may differ from those recorded in the GST return due to differences in depreciation methods and treatment of capital assets.
- Returns and refunds: Any differences in returns or refunds claimed in the GST return compared to the ITR and MCA may arise due to differences in the timing of filing, incorrect calculation of refunds, or issues with GST portal.
At Prakasha & Co, we can help you avoid receiving a notice from the GST department by reviewing your ITR and MCA filings, reconciling any discrepancies, and filing your GST return on time. Our team of experts can assist you with all your GST registration, filing, and compliance needs to ensure that you are fully compliant with all applicable laws and regulations.
It is important for businesses to comply with their GST obligations and accurately report their income in their ITR and MCA filings. Failure to do so may result in fines and penalties, as well as legal action. It is therefore crucial for businesses to ensure that they are meeting their GST obligations and keeping accurate records of their financial transactions.
At Prakasha & Co, we have been providing tax, legal, and compliance support services to businesses for many years. We have a team of experts who can assist businesses with their GST registration, filing, and compliance needs. Our team stays up-to-date with the latest GST regulations and can provide businesses with the guidance they need to ensure compliance with all applicable laws and regulations.
If you need assistance with your GST registration, filing, or compliance needs, please do not hesitate to contact us. We are always available to help businesses navigate the complex world of tax and compliance regulations and ensure that they are meeting all their obligations.