Dear I am SME of India Members
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 | firstname.lastname@example.org