Problem of Vanishing Vendors ( leads to Reversal of GST ITC with Intt @24% and Penalty )

Category Archives: Recent News

Problem of Vanishing Vendors ( leads to Reversal of GST ITC with Intt @24% and Penalty )

Dear   I am SME of India   Members

and Friends,


There is a Problem.

Hence this Post.

This is regarding the recently rising Problem of “Vanishing” Vendors, leading to big losses in GST. And this problem is rising .



The information below is True and is with personal experience by us.

And this message is to help other member units avoid this problem.


Vanishing Companies Includes (a) Those whose GST Registration is Struck off by the GST Dept (b) Those who are registered but are not filing GST Returns / filing them improperly


Every month, we are coming across cases of GST Audit by Department, and their insistence of GST-2A matching with your GST-3B.
If the difference is substantial, they ask for Detailed GSTR2A matching…. Even if this is not legally compulsory, Even if some High Courts have come in support of the Manufacturer/Trader, that he is not responsible for the mistake of non filing by the Vendor… but yet matter is being hotly debated.

The Above “addition” leads to Reversal of GST ITC with Intt @24% and about 15% Penalty

 


This means, that….. if the vendor charged you GST of 5 lakhs in January 2018, this “unpaid amount” will become about Rs 11.50 lakh including Interest @ 24% p.a. x 4 years, and Penalty of 15% by January 2022.

 


Points to Remember

Do a Regular Check of which Vendor is “OK” VALID and who is “Struck off” / “Cancelled” .. Every month / Every 3 months

Purchase Dept to listen to Taxation Department / Accounting Department / BPO .. and followup with Vendors for GSTR2A in-congruencies ….Every month / Every week

Tip of the day
In case, you are facing problems in doing this, Finsys can help you do this,
Advise is Complimentary for IamSMEofIndia members.
And, in case you want us to do this on regular basis, then, Professional Support is also available with our 70+ staff including 12 Qualified CA’s and 2 Qualified CS and 20+ Software Engineers , who can help make your life safer from this GST Risk.

Contact us at : www.finsys.co.in | corporate@finsys.in


Finsys is Proud to be Member of I-am-SME-of-India since 2010

Big Problem of Vanishing Vendors ( leading to Reversal of GST ITC with Intt @24% and Penalty )

Dear LMAI Members and Friends,


There is a Problem. Hence this Post.

This is regarding the recently rising Problem of “Vanishing” Vendors, leading to big losses in GST. And this problem is rising .



The information below is True and is with personal experience by us.

And this message is to help other LMAI members avoid this problem.


Vanishing Companies Includes (a) Those whose GST Registration is Struck off by the GST Dept (b) Those who are registered but are not filing GST Returns / filing them improperly


Every month, we are coming across cases of GST Audit by Department, and their insistence of GST-2A matching with your GST-3B.
If the difference is substantial, they ask for Detailed GSTR2A matching…. Even if this is not legally compulsory, Even if some High Courts have come in support of the Manufacturer/Trader, that he is not responsible for the mistake of non filing by the Vendor… but yet matter is being hotly debated.

The Above “addition” leads to Reversal of GST ITC with Intt @24% and about 15% Penalty

 


This means… that if the vendor charged you GST of 5 lakhs in 2018-19, it will become about 10 lakh including Interest and Penalty by 21-22.

 


Points to Remember

Do a Regular Check of which Vendor is “OK” VALID and who is “Struck off” / “Cancelled” .. Every month / Every 3 months

Purchase Dept to listen to Taxation Department / Accounting Department / BPO .. and followup with Vendors for GSTR2A in-congruencies ….Every month / Every week

Tip of the day
In case you are facing problems in doing this, Finsys can help you do this, Advise is Free for LMAI members and in case you want us to do this on regular basis, then, Professional Support is also available with our 70+ staff including 12 Qualified CA’s and 2 Qualified CS and 20+ Software Engineers ,who can make your life safer from this GST Risk.

Contact us at : www.finsys.co.in | corporate@finsys.in


Finsys is Proud to be Member of LMAI since 2017

Corrugation Machine Entry in Finsys ERP – Main Exe version ( Input-Output Screen option )

Finsys ERP has 4 variants of Corrugation Entry
a) Main Exe : This input-output screen option as in this video
b) Main Exe – Traditional method without input-output traceability
c) Web Exe
d) Android Phone Exe

The Method (a) is explained in this video
It is very good
a) see it as a boss of people who have to do this
b) See this as a doer yourself
c) see this as a academic. for knowledge of how this industry works

We at Finsys are proud to share our knowledge with you
Come let us make the Corrugation industry one of the most efficient, and digitally awake industry in India, and worldwide

Some of the key points we covered in this video are

jobcard to be created and approval etc is required before this step .. it can be done in just 60 seconds
machine loading , it will reduce your work from 1 hour to 5 minutes too

Corrugation button,
Operator traceability,
Downtime reasons,
rejection reasons,
Material reconciliations,
Reel traceability,
importance of bit reels hisaab etc

fala, core, trim, outer kg, core pipe related weight is also seen

Alert : Server may Crash during Diwali holidays | What to do | What to check | How to Safeguard | Protect & Relax

Wishing Good Health for your Server during the “Long Holidays” for Diwali

( Those with server on the Cloud, may ignore this message. Since Cloud is always “on”)



Friends, This year 2021, we all have a rather long and happy Diwali festivities and also Diwali Holidays. They may extend to between 4 days to 6 days in some companies


Sometimes the Factory Genset is also switched off. And this leads to Electricity being switched off for over 2 to 24 hours to the server.


Effective Result : Server improper shutdown. And this may lead to Hard Disk Crash. Effectively your Server may CRASH.


in 2019 and 2020, we got this report from over 5 to 6 customers each year.  Server Crashes during Diwali faced due to power supply or any other reason.


Team Finsys Wish you a bright and joyous Diwali.
May your festival of light celebrations be fun, safe, and spiritual.

We also need your kind attention on Backup Policy. Please take action before going to leave.


Question 1 =  Backup being taken manually Before going on leave ?
Ans. Must be YES. We strongly recommend this.


Ques 2 = Is your Manual or Auto backup saved offsite ( on google drive) ?

Ans. Must be YES. Note mere external hard disk is not sufficient.


Ques 3 = Are you Saving “Backup” on a Google Drive / One-Drive,  separately other than server ? Is it Working Fine ?

Ans. Must be YES


Electronics

Ques 4  = Your U.P.S should have capacity of 24 hours ? Is it working fine ?

Ans. Must be YES


Ques 5 = Size of Backup is increasing gradually regularly ? There is no erratic reduction ?

Ans. Must be YES.



Take Precautions and have a Happy Diwali

We wish you the Seasons Greetings and Happiness, and Prosperity, always. We in India love our Diwali festival. Let us enjoy and make our Country and our World Stronger, Happier always.