From banks & insurance companies to cement, travel firms, GST notices pile up

From insurance companies to banks and cement manufacturers to travel services firms, Goods and Services Tax (GST) authorities are sending a flurry of notices as they approach the deadlines for sending out demand orders and notices for previous financial years. While public sector insurance major Life Insurance Corporation (LIC) has received five notices in February, with amounts ranging between 4 crore to over Rs 400 crore for wrongful availment of inputs tax credit (ITC), J&K Bank has received a notice of Rs 16,261 crore for not levying GST on interest receivable under Transfer Pricing Mechanism (TPM) between corporate headquarters and branches from common funds.

Cement company Shree Cement has received notice of Rs 12.52 crore this month for non-payment of tax on outward supplies and wrong ITC availment, while travel services firm EaseMyTrip has got a penalty notice of Rs 17.35 lakh on February 24 for mismatch in GST liability in GST returns and availment of ineligible ITC for FY21.

Most of these notices are coming ahead of the February 28 deadline for issuance of demand order for GST violations for reasons other than fraud or wilful misstatement or suppression for financial year 2020-21. The deadline for issuing demand order comes three months after the issuance of showcause notice, which is the first step of intimation by GST authorities in case of violations. So, for instance, since February 28 is the deadline for issuing demand orders for cases pertaining to FY21, the deadline for showcause notices for FY21 was November 30, 2024.

Source : https://indianexpress.com/article/business/bank-insurance-companies-cement-travel-firms-gst-9860928/