GST Notices: Find out why the GST authorities are delivering notices to thousands of businesses here
New GST Notice: Many insurance businesses had already received letters from the GST Department. Maruti Suzuki, a car manufacturer, has also got a GST notification.
These days, the GST department is highly tough, and notices to the businesses are consistently being sent. Many insurance businesses have received letters from the GST administration. Thousands of businesses have now received letters from the GST department addressing the issue of FY 18. In a related matter, the GST department has also issued a show-cause notice to Maruti Suzuki, the world's largest automaker.
Response is expected within a month.
Thousands of businesses nationwide have received notices, according to an ET report. These notices state that there was an unpaid tax balance for the fiscal year 2017–18. The warning must be given to the companies no later than September 30. All of the businesses have been given 30 days by the GST administration to react to the notice.
Because of this, notices have been sent.
The report states that the GST administration discovered a discrepancy between the enterprises' GST liabilities and outputs. Notices have also been given for other reasons, such as input tax credit, incorrect tax credit claims, and credit reversal in circumstances of exempted goods. These notifications have been delivered to the businesses throughout the past two weeks.
Six insurance companies have made tax demands.
Earlier, there were rumors that the GST administration had sent letters to six insurance companies. The warning was also disclosed to the stock exchanges by ICICI Prudential, an insurance provider. The GST agency claimed that insurance businesses accepted payment for re-insurance premiums but did not pay additional GST.
Observation also for Maruti Suzuki
The largest automaker, Maruti Suzuki, also received a notification from the GST department in a separate matter. On Friday, Maruti Suzuki stated this to the stock markets. The warning was received, according to the company, for the period of July 2017 to August 2022. The GST division has issued a tax demand, together with interest and penalty, to the corporation. The business has been asked to provide justifications for this. Maruti Suzuki states that it would provide the appropriate authority with their response.
