Tuesday, June 25, 2024

GST demand notices contributing to burgeoning GST collections

PUNJAB NEWS LINE | May 01, 2024 05:34 PM

NEW DELHI: An increasing number of GST demand notices being issued to companies is contributing to the burgeoning GST collections.

Abhishek Jain, Partner and National Head, Indirect Tax, KPMG India, said, “The consistent growth in GST collections with the latest being the highest collection ever is a big cheer and reflects upon the strong domestic economy, especially given the fact that growth on account of domestic transactions is 13.4 per cent as compared to imports at 8.3 per cent. Another significant reason for this growth could be linked to the deadline for GST audits and the corresponding notices issued during this year."

Companies are receiving a flurry of GST notices from the authorities. Many of the companies have expressed their intention to appeal against the GST orders.

Apollo Tyres said it received an order passed by the Sales Tax Officer, Delhi, under the GST Act demanding GST and levying a consequential penalty of Rs 13.94 lakh. The dispute is regarding availing input tax credit (ITC) and other issues, the company said.

“The company will file an appeal before the Appellate Authority in due course. There is no material impact of the same on financial, operations or other activities of the Company”, it added.

Crompton Greaves Consumer Electricals said it received an order from the state tax authorities in Mumbai for the period from April 2018 to March 2019 imposing a demand of Rs 22.49 crore.

“Based on the merits of the matter, prevailing law, and advice of the consultant, the company is planning to appeal against this order before the Commissioner (Appeals) and reasonably expects favourable orders from the appellant authorities," the company said.


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