CA Sansaar
GST Department Issues Notices to Firms in Karnataka for Old Compliance Issues
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Several business establishments across Karnataka have reportedly received notices from the GST authorities regarding discrepancies in their past tax filings. According to tax professionals, many of these notices relate to records from the initial years of the Goods and Services Tax (GST) regime, which was introduced in 2017, with some cases dating back four to six years.
Experts say the tax department may be increasing scrutiny as the financial year approaches its end, possibly to strengthen revenue collection. A significant number of the notices highlight minor mismatches or routine compliance errors, which tax practitioners note are not uncommon in regular business operations.
After receiving a notice, businesses are generally required to appear before the tax authorities for a hearing, where the reported discrepancies are reviewed. Frequently cited issues include stock mismatches, incorrect reporting under certain tax heads, and compliance gaps related to the Reverse Charge Mechanism (RCM). In some cases, businesses in the hospitality sector have received notices concerning rental transactions falling under RCM provisions.
Another concern raised by professionals is that a few notices were reportedly issued offline rather than through the official GST portal, which is typically the standard platform for such communications. In several instances, matters were resolved through discussions with assessing officers instead of formal legal proceedings. Many businesses prefer addressing the issue during the hearing stage rather than pursuing litigation in courts.
Experts say the tax department may be increasing scrutiny as the financial year approaches its end, possibly to strengthen revenue collection. A significant number of the notices highlight minor mismatches or routine compliance errors, which tax practitioners note are not uncommon in regular business operations.
After receiving a notice, businesses are generally required to appear before the tax authorities for a hearing, where the reported discrepancies are reviewed. Frequently cited issues include stock mismatches, incorrect reporting under certain tax heads, and compliance gaps related to the Reverse Charge Mechanism (RCM). In some cases, businesses in the hospitality sector have received notices concerning rental transactions falling under RCM provisions.
Another concern raised by professionals is that a few notices were reportedly issued offline rather than through the official GST portal, which is typically the standard platform for such communications. In several instances, matters were resolved through discussions with assessing officers instead of formal legal proceedings. Many businesses prefer addressing the issue during the hearing stage rather than pursuing litigation in courts.
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