GST Officials will Undertake Unannounced Recovery Visits

This move when tax liability doesn’t match with reported transactions

If your tax liability reported in the necessary form is less than what invoices mentioned in the outbound supply form should draw in January, the government has the authority to send its recovery officials to your premises without notice to collect GST.

According to a gazette notification issued on Tuesday, the relevant clause in the Finance Act of 2021 will take effect on January 1, 2022.

If a company’s yearly turnover exceeds Rs.5 crore, it is required to file two types of returns monthly under the GST system. GSTR-1 and GSTR-3B are the sources of these.

The first is a return that reveals invoices for sales, while the second is for stating GST liabilities in aggregate. While GSTR-1 must be reported by the 11th of the month following the transaction, GSTR-3B must be filed by the 20th of the month after the transaction. If you have a yearly turnover of up to Rs.5 crore, you can file quarterly filings.

If someone reports invoices totaling Rs.1 crore in GSTR-1 but only shows taxes on Rs.1 lakh in GSTR-3B, the government will be able to deploy officials to his or her business premises in January to recover GST on Rs.99 lakh in sales. The government is not compelled to provide notice in this situation.