Government takes step to ease GST notices, litigation

Government takes step to ease GST notices, litigation

NEW DELHI: Following up on GST Council decisions, Central Board of Indirect Taxes and Customs has issued over half a dozen detailed circulars on steps to reduce litigation and appeals, issuing show cause notices to taxpayers and speeding up registrations and changes that businesses need to make. In addition, it has sought to address concerns around exports as well as sectoral issues such as those related to banks and NBFCs.Tax authorities have underlined the need to facilitate registration while ensuring that there is no misuse. “While there is a need to exercise due diligence in processing registration application to prevent GST registration form being obtained by unscrupulous and fraudulent elements for passing on input tax credit (ITC) without any underlying supply, at the same time, it is also important to ensure that genuine applicants seeking registration are able to complete the process without undue inconvenience,” CBIC said in the circular, while pointing to grievances that it had received due to difficulties faced by taxpayers.It specifies that pre-show cause notice intimation may be given to taxpayers, wherever feasible, so that they can clarify their position prior to the start of formal proceedings.

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