Detailed information of 5 Years

[DK AGGARWAL]

Dear Sir/Madam

Now a days GST department is asking detailed information of 5 years of providing copy of all Purchase Invoices, GRs, Eway Bills and Sales Invoices with E way Bills generated. Bank details and proof of payment with in 6 months of purchases, copy of Debit and credit notes, bills for reverse charge etc. If the turnover is more than 100crs, please guide, how to provide all information in short time of 10 days. Scanning will take months for all to make PDF. Please guide how to handle the issue. Is there any provision or case law where a test check can be done by the department to avoid tedious job.

Your guidance will help many concerned

D Aggarwal

[Padmanathan KV]

Kindly provide under which provisions of law the said proceedings are initiated?

[KASTURI SETHI]

Is it all verbal or have you got a letter from the department  ? 

[Shilpi Jain]

You could write to the department informing them your concerns and request them to visit your office to conduct the audit where all the required information and documents can be provided.

Ensure you take an acknowledgement of the said communication for your records.

[DK AGGARWAL]

Reply to some queries

They are asking information u/s 74, though the Audit has already been done for the relevant years.

D Aggarwal

[KASTURI SETHI]

The department is empowered to ask for any information from any person. See the definition of a person.  See Sections 151 and 150 of CGST Act. 

Section 74 is meant for issuance of demand SCN for extended period. 

[KASTURI SETHI]

Despite the completion of audit and  the  issuance of Final Audit Report thereof information can be sought for. 

[Padmanathan KV]

In my humble opinion, the details of purchase invoice, GRs, e-way bills etc... cannot be sought through a show cause notice in section 74 despite the powers granted under section 151, 152 etc. Section 74 is a provision for demanding tax, interest penalty etc where dept establishes its a case of fraud, supression, willfull miststament etc.

SCN u/s 74 cannot be initiated to start fishing & making roving enquiries. In fact SCN can be issued only after necessary inquiry/investigation is complete and critical facts and evidences are examined by PO. Thus, the very fact that facts and evidences are not examined and established itself is a ground to drop the proceedings since it's vague and absurd.

Any how, the best course of action for you is to consult an expert and draft a proper reply without subduing to roving inquiries by way of calling for these details.

[KASTURI SETHI]

Instead of submitting such bulky information in physical copies which is time consuming, you can request for physical verification of all records in the business premises.

What is the status of audit by the department ?

[Amit Agrawal]

I agree with Shri Padmanathan Ji for his views in post at serial No. 7 above. 

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

Forum Participant Questions GST Department's Request for Detailed Financials, Citing Section 74 Concerns and Completed Audits A participant in a discussion forum raised concerns about the Goods and Services Tax (GST) department requesting detailed financial documents from the past five years, including invoices and bank details, within a short timeframe. The participant questioned the legality of such demands under Section 74, especially since audits for those years were completed. Responses varied, with suggestions to request departmental visits for audits, cite legal provisions like Sections 151 and 150 of the CGST Act, and consult experts to draft a formal reply. Concerns were raised about the appropriateness of using Section 74 for such inquiries.