BENGALURU: Several business establishments across Karnataka have received GST notices related to older tax filings and minor discrepancies from state tax authorities, said tax professionals.
Many notices are linked to records dating back four to six years, which are the early years of the GST, which was introduced in 2017, they said. Authorities may be sending such notices because of pressure to mobilise revenues before the financial year ends. Many of these notices relate to minor discrepancies, which are common in routine business operations, chartered accountants said.
Once a notice is issued, businesses are called for hearing where discrepancies in their filings are examined. Common issues cited in the notices include stock mismatches, errors in filing heads and compliance gaps under the Reverse Charge Mechanism (RCM). Businesses in the hospitality sector have received notices related on rental transactions under RCM provisions.
Another concern is that some notices were allegedly issued offline rather than being recorded on the official GST portal. Some cases were resolved through discussions with assessing officers rather than formal proceedings, the tax professionals said. Many business owners prefer resolving the issue during the hearing stage instead of challenging the notice in court.