City
Epaper

Taxpayers worried over GST red-flag reports

By IANS | Updated: November 24, 2019 09:50 IST

Many GST taxpayers, especially small firms, are a worried lot these days with authorities sending system-generated red flags in their online return forms.

Open in App

A Delhi-based GST practitioner said that taxpayers are given very little time to respond to the red flags, creating panic among the assessees.

"The assessees are always scared of any communication coming from the tax authorities. The red-flag reports are so detailed and long that any person would get panicked," said Rajat Mohan, Senior Partner, AMRG & Associates.

has seen a red-flag report to the taxpayer.

Sources said that the red-flag reports are very detailed and highlight discrepancies across various parameters. The reports highlight unreconciled items, non-compliance and deficiencies in the digitally-filed documents.

Now that businesses have started filing their annual returns and reconciliation reports, the number of red-flag reports for the assessees have jumped.

"Our experience is that wherever such incidents have occurred and assessees have approached the authorities, they have been very responsive," said Amit Bhagat, Partner, Dhruva Advisors.

"There are examples where authorities have been very helpful but there are situations where there are actually no remedies either because of system related issues or the problem is unique," he added.

Tax experts, however, hope that the government will not penalise taxpayers for their genuine mistakes.

A senior executive of a chartered accountancy firm expressed worry over so many red-flag reports being sent to assessees, saying the possible reason for this could be year-on-year decline in GST collection.

"Since the collection has dropped, the department wants to scrutinise more cases. They have probably developed a system under which red flags would be immediately developed after a mismatch between GSTR-3B form and GSTR-1 or maybe mismatch between e-way bill and GSTR 1," he said.

With GST collection remaining tepid, the government has directed its focus on compliance. Acting tough on non-filers, the Mumbai zone of the indirect tax department recently asked field officers to cancel registration of firms for not complying with return-filing requirement.

(Nirbhay Kumar can be contacted at nirbhay.k@.in)

( With inputs from IANS )

Tags: GSTSenior Partner
Open in App

Related Stories

NationalNew GST Reforms: CTI Launches Poster Campaign in Delhi Markets Raising Awareness About Rate Cuts (Watch Video)

NationalNew GST Rates: Launching on the First Day of Navratri, Reforms Bring a ‘True Double Bonanza,’ Says PM Narendra Modi

NationalPM Modi To Address Nation At 5 PM Today: Big Announcement Expected

NationalGST 2.0: Amit Shah Says, 'Want You to Shop More This Festive Season, But Only Swadeshi'

NationalBMW Slashes Car and Bike Prices in India After GST 2.0 Implementation

कारोबार Realted Stories

BusinessCommerce Secretary calls for diversification, innovation and value addition in coffee sector

Business'Festive booster': Centre releases tax devolution of Rs 1,01,603 crore to state govts

BusinessCEA Nageswaran lays thrust on long-term savings as India's elderly population increases

BusinessHimachal's heritage & economy to get boost from GST reforms

BusinessCoffee exports from India have doubled in recent years: Commerce Secretary