Tax experts raise concerns over misuse of GST audit scrutiny notices
The experts pointed out that such notices should be reserved only for cases involving suspicious or fraudulent activity. "Majority of scrutiny notices are being issued under Section 74(A) instead of Section 73, which applies to genuine discrepancies. This results in unnecessary penalties and denies taxpayers access to the amnesty scheme," said Deep Thakkar, co-chairman of GCCI's indirect tax committee.
He urged CGST authorities to issue Section 74 (A) notices only in cases where fraud is suspected, rather than applying it as a blanket rule.
He also called for digitisation of all notices and orders to eliminate the need for manual processing, and requested faster processing of GST registrations.
Sunil Kumar Mall, chief commissioner of CGST Ahmedabad Zone, said, "We've taken several steps to facilitate taxpayers and increased the number of officers for GST registration to ease the process."
Addressing the industry's concerns, Sanjay Bansal, principal commissioner of CGST Ahmedabad, noted that GST is set to complete eight years, and the govt continues to prioritise ease of doing business, particularly for MSMEs.
CGST officials assured stakeholders that feedback from the conclave will be considered and necessary steps will be taken to address the concerns raised.
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