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Notices to firms after mismatch in GST tax credits

Notices to firms after mismatch in GST tax credits

Goods and services tax authorities have started issuing notices to several companies, after uncovering a mismatch in tax credits using deep analytics tools embedded in the GSTN software.

The tax department's analytics department has found these discrepancies in returns filed by companies, industry trackers said. The GST framework allows companies to set off part of their future tax liability against GST paid by them on the raw materials sourced from suppliers.

s per the GST framework, both supplier and the company that it supplies have to upload forms on the tax department's website.

The tax department then matches the GST paid with the tax credit claimed.

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