A gross mismatch in the GST returns filed by number of assessees has caught the attention of tax authorities. The department has come across cases of differences of GST liability mentioned in two returns filed by same assessee. In Nagpur zone, which covers Nashik and Aurangabad too, the department has detected mismatch to the tune of Rs. 200 crore for nearly 400 returns. The cases are being investigated, if the assessee is not accepting the mismatch further notices are being sent. “Such cases have been found all over the country in good numbers,” said sources in the department.
In other words, taxpayers have accepted GST liability of one amount in the first return, but the figure has been under-reported in the detailed returns of the same period that are filed after paying the taxes. Under the new tax regime, returns have to be filed in two stages. First, GSTR – 1 is filed which is a bill-wise summary of the sales and tax payable on total receipts. After that, GST3B is filed which is a detailed return in which the final tax liability is calculated after deducting the input tax credit (ITC).
However, the department has come across cases in which suppose an amount of Rs1 lakh is mentioned as the total liability in GSTR – 1, but it has been shown as Rs. 50,000 in GST3B which is further reduced after adjusting the ITC. ITC is available on the tax paid by an assessee on purchases which can be adjusted against the liability arising out of sales. GST3B is not accepted in the system unless the tax is paid. Businessmen, who are short of funds to pay the tax, have resorted to under-reporting of the liability in the 3B returns, said sources. “The returns cannot be accepted unless the taxes are paid. To ensure that the returns are accepted by the system, the amount is reduced,” said a source in the department.