GST Deptt issues mass automated show cause notices to beat the deadline of 30th September,2023

In last week of this September,2023  the GST Deptt has issued  mass automated show cause notices to a very large number of Traders Registered with GST alleging shortfall in payment of GST for the Financial Year 2017-18 on account of following allegations

a. Mismatch in GST output liabilty between GSTR 1 and GSTR 9.

b. Mismatch in GST input tax credit between GSTR 3B and GSTR 2A.

c. Ineligible ITC of airlines, hotels, construction contracts

d. Reversal of ITC on exempt supplies

These notices have been issued automated apparently without any application of mind. The GST authorities have issued these notices without even asking for or reviewing any documents of these traders. It has not even been examined whether these adjustments have already been made by the taxpayer or not. Even system errors themselves are being ignored while issuing these notices.

These notices have also been issued in a hurry since Sept 30, 2023 is the last date to issue such notices for financial year 2017-18. Currently, only those businesses who fall under the jurisdiction of State GST department of Delhi have received these notices. We can expect that other states or the Central GST department may also follow suit.

The authorities have given a time of 30 days to respond to these notices. If a proper response is not given clarifying the mismatch or the differences, the GST authorities will crystallise the demand by December 31, 2023.

So make sure to submit detailed reply well in time to  these notices