GST Order Passed

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients got a notice from the GST authority stating that, my client's GSTR-2A purchases were showing some purchases which the seller has not paid the tax and no movement of goods were involved. Based on this notice, I have checked with my client records, there are no purchase bills and no credit was taken in GSTR-3B during the financial year. Accordingly, I have replied to the concerned authority, the purchases which were reflected in my client's GSTR-2A & your notice were neither recorded in their books of accounts nor availed any credit and no transactions between the parties so far.

Even, after receipt of my reply, the concerned authority because it is showing in my client's GSTR-2A, therefore its suppression of purchase hence liable to pay @ 18% and penalty u/s 74 and interest 50 of GST Act accordingly order was passed.

Thanks in Advance.

[Rajagopalan Ranganathan]

Sir,

since the order is already passed the only remedy available is to file statutory appeal to the appellate authority. Whether the original authority provided you a personal hearing? If so have you produced your book of accounts to prove your stand. Mere mis-match between GSTR-3B and GSTR-2A cannot fasten any liability on you. Based on evidence the Department is bound to establish some purchases which the seller has not paid the tax and no movement of goods were involved. You do not have any control on your seller to compel him to pay the tax promptly. It is for the Department to take action agains the seller..

[KASTURI SETHI]

Order-in-Original passed without service of SCN and without affording opportunity for personal hearing will be set aside by the Appellate Authority at the first instance. I think this has happened due lack of knowledge. It is a clear-cut case of violation of principles of natural justice. Auto-populated GSTR 2A is not final. It is subject to physical verification of the books of account maintained by the tax-payer/assessee.

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

Thank you so much for your valuable reply.

[Ganeshan Kalyani]

Sir, please check your email account. The officer must have sent you a normal mail seeking reason for the difference. Thereafter a notice via email granting an opportunity for personal hearing would have been given to you. Previously, when we use to visit department we were fully aware about the development of the case. Now a day in the online communication mode it became slightly difficult to keep track of the proceedings. Need to keep track of online mode of communicaiton as well.

[THYAGARAJAN KALYANASUNDARAM]

Dear Mr. Ganeshan Kalyani,

Yes, you're absolutely correct sir. I will ask my client to check their email communication sir.

Thanks for your valuable reply.

AI Summary

GSTR-2A discrepancy may trigger GST liability notices; remedy is appeal and verification of taxpayer books and hearing. GSTR-2A mismatches prompted an assessment treating unrecorded entries as suppressed purchases subject to tax, penalty and interest even though the recipient had no purchase invoices or credit claimed in GSTR-3B; auto-populated GSTR-2A is not conclusive and the department must establish purchases by evidence and verify the taxpayer's books, with remedies including production of accounts, seeking a hearing and filing the statutory appeal if the order was passed without proper notice.