The Goods and Services Tax (GST) department has become very strict these days. Especially he is sending notices to insurance companies. This has created a stir among insurance companies. It is being said that the GST department has issued notices to thousands of companies in the matter of financial year 2018. The biggest thing is that car manufacturing company Maruti Suzuki has also been issued a show cause notice from the GST department. In the notice, Maruti Suzuki has been asked to reply soon.
According to an ET report, the GST department has issued notices to thousands of companies across the country. The GST department says that these companies have committed fraud in tax payment in the financial year 20170-18. These companies including Maruti Suzuki have paid less than the prescribed tax. The special thing is that the GST Department, in its notice, has set September 30 as the deadline for all the companies to respond. This means that action can be taken against those companies which have not been able to respond by September 30.
Notices have been sent within the last 15 days
According to the GST department, the GST outputs and liabilities of the companies were not matching with each other. Apart from this, notice has also been issued for reasons like input tax credit, wrong claim of tax credit and credit reversal in cases of discounted supplies. The GST department has sent these notices to the companies within the last 15 days.
Took payment of re-insurance premium, but did not pay GST
Let us tell you that this is not the first time that the GST Department has sent a notice to a company. Even before this, the department has sent notices to 6 insurance companies. When insurance company ICICI Prudential received the notice from the GST department, it also informed the stock markets about it. However, in the ICICI case, the GST department had said that this company took the payment of re-insurance premium, but did not pay further GST.