In GST assessment for FY 17-18, the AO has raised a demand of 18% on a portion of indirect expenses but no reference to the act/rule under which the demand is raised is mentioned.
Is this allowed? if this order to be appealed, then what grounds of appeal are available to the assessee?
The extract from the order is :
' The tax payer has furnished the abstract details of other expenses for Rs ______. The details are verified and accepted except the following expenses which are disallowed.
Repairs to building Rs 435482 Tax payable @ 18% - Rs 78386
Repairs to machinery Rs 351719 Tax payable @ 18% - Rs 63309 '
Any suggestions or guidance is welcomed.
Debate Over 18% GST Demand for FY 2017-18: Lack of Legal Basis Sparks Calls for Appeal and Legal Compliance. In a discussion forum, participants addressed an issue regarding a GST assessment for FY 2017-18 where an assessing officer demanded 18% GST on certain indirect expenses without citing relevant legal provisions. Contributors debated the legality of such an order, suggesting it could be appealed due to its lack of legal references, potentially rendering it invalid. They criticized the trend of issuing orders without proper legal basis, attributing it to revenue-driven motives. Participants emphasized the importance of adhering to legal standards and the principles of natural justice, expressing frustration with the current tax administration practices. (AI Summary)
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