TaxTMI 
TaxTMI 
Summary of Show Cause Notice
DEFECT NO 1: Nil/Meagre tax Payer whose turnover in GSTR-1 and GSTR-3B lower than the purchases as per GSTR-2A/2B
How to submit reply
composition dealer - DRC - 01
15 May 2024 
3 Replies 
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GST reconciliation: substantiate purchases with books of accounts and invoice-level matching to address mismatch notices.
Composition dealer should verify whether mismatches arise from typographical or portal errors, rely on books of accounts to substantiate actual purchases and sales, request further particulars if necessary, and perform invoice-to-invoice reconciliation to identify items not pertaining to the dealer or not furnished in returns, then draft a reasoned reply with supporting working papers. (AI Summary)
Composition dealer should verify whether mismatches arise from typographical or portal errors, rely on books of accounts to substantiate actual purchases and sales, request further particulars if necessary, and perform invoice-to-invoice reconciliation to identify items not pertaining to the dealer or not furnished in returns, then draft a reasoned reply with supporting working papers. (AI Summary)