By N Thulasiraman

The VAT Authorities incorrectly demanded VAT to an extent of Rs.95 crore for Purchase and Sales Suppression. Their contention arose from the difference between monthly returns filed and the annual accounts.

Purchase suppression Rs.79 Cr arose mainly on account of authorities considering raw material consumed value as purchases. This was brought to the notice of AO and then we also demonstrated the reconciliation between purchases reported in financials and the purchases reported in the returns.

Sales Suppression Rs. 16 Cr arose on account of excise duty, scrap sales, discount allowed subsequent to invoicing etc. We produced a total reconciliation between the two values, which was found to be correct and the demand was dropped in toto.

When notification 19/2016-Cx(NT) was introduced, one of our clients applied for registration of their 3 units under the notification. AO and other authorities verified the units but were delaying the approval of registration. We escalated this to the commissioner and he was kind enough to issue a note to the AO advising him to approve the registration under notification 19/2016.

Returns handling under the GST regime has been a difficult task. One of our clients wrongly entered their inward RCM value resulting in their output liability increasing manifold without adequate ITC available for set off. After vigorous and consistent follow up with the Senior officials in the jurisdictional office and the GST help desk, the portal was reopened for resubmission of Form GSTR 3B. Every client is handled in a unique way and we understand their problems and look out for the best solution.

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