By Martin Shwenk Leade
Copyright indiatimes
The Central Board of Indirect Taxes and Customs (CBIC) is working on a mechanism to set a monetary limit for issuing GST demand notices to ensure that notices are not issued on flimsy grounds, a senior official told PTI on Tuesday.CBIC member Shashank Priya said that the board will soon issue an instruction to the field formations in this regard. When we finalise our instruction, we will ensure some sort of mentoring by senior officers so that notices are not issued on flimsy ground, he said.Addressing an ASSOCHAM event, he said, “The messaging that we need to give is, we are not interested in demand just getting confirmed… We are working on setting up a monetary limit for demand notices.”He added that once a demand is raised, field offices must ensure “fair adjudication”. “…where demand is not fair we shouldn’t be scared of dropping it. That is a cultural change we have to start working”.AMRG & Associates Senior Partner Rajat Mohan said that any proposal to introduce a monetary threshold for issuance of demand notices under GST is a highly welcome initiative.Live Events”At present, even small-value disputes often result in notices, leading to unnecessary compliance burdens and litigation for businesses. By prescribing clear monetary limits, the system can focus on material cases, reducing administrative effort on trivial matters,” Mohan told PTI.Under the current system, the threshold for departmental appeals before Appellate Authority is Rs 20 lakh, Rs 1 crore for the GST Appellate Tribunal, and Rs 2 crore for High Courts and the Supreme Court.”Introducing such limits at the notice stage will streamline compliance, conserve both taxpayer and administration resources, and foster greater trust between businesses and authorities by ensuring that enforcement efforts are proportionate to the financial significance of the dispute,” Mohan said.Simpler taxation process CBIC is working on making GST return process simpler by making both outward supply and inward purchases automated, he revealed. “We have sent letters to all the associations, we have sent out letters to the field formations to interact with the taxpayers to see where in the existing GSTR-3B framework amendments are needed… then we will see how we can address it so that at the end of the day the only point of input in return for those with annual turnover of above Rs 5 crore is e-invoice and everything else will be automated,” he told PTI.Under the current tax system, e-invoice is mandatory for B2B sales for businesses with turnover of Rs 5 crore and above. Shashank Priya further said that the department is also looking at how to make e-invoice process simpler so that taxpayers with lower turnover can start adopting it.Working on a mechanism that effectively secure supply-side data, the automates system is being worked upon. Under this, while the e-invoices will capture B2B transaction data, QR codes can validate B2C supplies, and e-way bills can ensure transparency in goods movement. On the corresponding side, receipt-side information can also be safeguarded through the combined use of the Input Matching System (IMS) portal and e-way bill records.Add as a Reliable and Trusted News Source Add Now!
With inputs from PTI(You can now subscribe to our Economic Times WhatsApp channel)
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News ongst demand noticesCBICGST return processassochamCentral Board of Indirect Taxes and Customsindirect taxescustomsmonetary limitgst appellate tribunal(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
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