To curb tax evasion, authorities will start matching details given in
the Goods and Services Tax Return (GSTR) Form Number 1 with those given
in the e-way bill.
The matching will begin with returns to be
filed for April as it is the first month when the tax authorities will
have both GSTR1 and e-way bill data.
In the meantime, tax authorities have issued notices to over 8,000 assessees for differences in sales figures of more than ?50
lakh in their GSTR1 and GSTR3B forms. Notices have been served on the
basis of returns filed during August and December, 2017. Based on their
response, a decision will be taken on how much tax and penalty they need
to pay.
"Matching process will ensure supply of goods have been
done properly," Prakash Kumar, CEO of GSTN, the IT backbone of unified
indirect tax system, told BusinessLine.
The logic behind
matching is to plug any possible loophole in filing of returns. All the
GST assessees are required to file GSTR 1 either on monthly or on
quarterly basis while e-way bill is required for movement of goods of
value exceeding ?50,000.
Commenting
on the development, Rakesh Nangia, Managing Partner, Nangia & Co
LLP, said the matching of details mentioned in GSTR-1 with the e-way
bills will help in curbing tax evading practices as the invoice matching
mechanism will be a significant tool in ascertaining the transaction
details while matching it with the details furnished by the taxpayer.
"However,
the said mechanism will be partly effective/beneficial since only
supply of goods can be traced by the matching concept. Further, e-way
bill is required on movement of goods where consignment value exceeds ?50,000," he explained while adding that in cases where value of goods does not exceed ?50,000, matching would not be possible.
Action for mismatch
Option
has been given on the e-way bill portal to take reports for particular
tax period from e-way bill portal and match with tax invoices for
outward supply and inward supply/delivery challan. Information about
e-way bills, along with the transactions captured in GSTR1, will make it
easy to spot mismatches in certain cases where invoice has not been
reported in GST return by the taxpayer or where taxpayer fails to file
his returns or furnishes wrong details.
"In such cases, notice may
be served by the authorities demanding clarifications for difference in
tax amounts along with penalties. The said measures were adopted by the
VAT authorities in the erstwhile regime also. Further in extreme cases,
confiscation of goods, along with penalties may be imposed by the
authorities," Nangia said.
e-way bill was introduced from April 1.
It is applicable for both inter-State and intra-States movement of
goods, though the latter is being introduced on phases. So far, 18
States have adopted e-way system. Maharashtra and 7 Union Territories
will start the new system for the intra state/UT movement of goods from
May 25 while the others will do so by June 3.
e-way bill capacity
GSTN
claims that there is capacity to generate e-way bill up to 70 lakh
every day. At present, on an average 11-13 lakh e-way bills are being
generated everyday. Nearly three-fourth of the e-way bills are related
to inter-State trade while the remaining are for intra-State. However,
once all the States start using e-way bill for internal movement, the
ratio is expected to change to 50:50.