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.

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.