New Delhi. Filling the wrong returns of GST is going to be costly in the new year. From January 1, the Goods and Services Tax authorities will be able to take direct steps for recovery against the traders who have filed wrong GST returns. This step will help in checking the tendency of showing wrong bills. It is often complained that businesses showing excess sales in their monthly GSTR-1 form under-report the same in the payment related GSTR-3B form to reduce the tax liability.
According to the news of Punjab Kesari, the government had made a provision for this change in the Finance Bill for the financial year 2021-22. The Central Board of Indirect Taxes and Customs (CBIC) notified amendments to the GST Act on December 21. After this, it will be implemented from January 1, 2022.
So far first notice, then recovery
Earlier, when such discrepancies came to the fore, notice was issued by the GST Department and then the process of recovery used to start, but after changing the rules, the officers can start the recovery process directly.
According to Rajat Mohan, Senior Partner, AMRG & Associates, this change in the GST law is very stringent and gives the GST department special powers to collect. He said that there is a possibility of misuse of this new provision.
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