Tax officials have sent emails seeking information from businesses that paid over 95% of their dues using input tax credit to ascertain the key factors responsible for subdued GST collections. These queries relate to a large variation in turnover reported, negative growth in central GST liability and a wide divergence in input tax credit between GSTR 2A and GSTR3B. In some centres, businesses have been even asked to furnish tax payment challans.
Pratik Jain, national leader, indirect taxes, PwC said that it would be good if the government looks into this issue and comes up with clear guidelines in terms of information which should be sought from businesses and the manner in which it would be used.
In the revised budget estimate for FY 2019, the government pegged GST revenue at Rs 6.43 lakh crore, Rs 1 lakh crore less than initially projected. Companies are peeved as tax authorities are said to be giving them less time to respond to queries, apart from the high frequency of such emails seeking information.
The Institute of Chartered Accountants of India (ICAI) western regional council has written to tax authorities questioning the practice. The authorities have been relying on multiple sources to verify information and ascertain whether there’s been any deliberate move to suppress tax payments.
