Recently introduced amendment allowing credit in GSTR 3B only as appears in 2B: An Apt Representation by Ahilya Chamber of Commerce & Industry

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Recently introduced amendment allowing credit in GSTR 3B only as appears in 2B: An Apt Representation by Ahilya Chamber of Commerce & Industry

 
03.01.2022
To
Smt. Nirmala Sitaraman
Chairman,
GST COUNCIL,
New Delhi.
Respected Madam,
Recently introduced amendment allowing credit in GSTR 3B only as appears in 2B
While we welcome changes in GST to plug in holes which are used by unscrupulous elements for Tax evasion, we would at the same time, request you to please keep in view the hardships these may cause to the honest Tax payers.
The recently introduced amendment w.e.f 01.01.22 allows credit to the Taxpayer only to the extent it appears in GSTR-2A or GSTR-2B. Although on the face of it, this appears to be a justified provision to further discipline tax payers, this may result in many practical problems.
  1. There are occasions when even a well-disciplined tax payer is unable to file GSTR-1 in time.
  2. Errors may creep in GSTR-1 inadvertently.
  3. Portal may not pick-up proper data from GSTR-1 for reflecting in GSTR 2B and so on.
In the original scheme of things Taxpayer was allowed to make amendments in GSTR, if he was fulfilling all the four conditions for availing ITC as required in Section 16 (2). He also had recourse to pressing the supplier to make amendments.
We strongly feel that this provision should be brought in as was originally stipulated.
  1. Visit by authorities and attachment of Bank Accounts/Property:
Although this provision appears to have been brought in as a deterrent and for penalising large scale evaders, we are afraid, it may be – or can we say, most probably will be – used by unscrupulous elements masquerading as officers, for extracting money from unsuspecting Tax Payers by threatening them.
We, therefore, suggest that this provision should be applicable only where the mismatch is of the order of Rs. 1 Crore or more.
Also, officers should be strictly advised to reveal their identity by ID Cards issued by the department whenever and wherever they go for inspection.
We do trust that our suggestions will merit your kind consideration and hope to be favoured with a positive action.
With anticipatory thanks,
Ramesh Khandelwal        Sushil Sureka                      Nitesh Gupta
President                              General Secretary              Head Taxation Committee
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