Faced with a sort of revenue crisis, the government appears to have become penny-wise, especially when it comes to collect GST. The government is sending GST notice for dues as low as a few paise to the taxpayers. The government recently clarified that those filing returns should also pay interest on the taxes payable after the due dates and ordered the recovery of Rs 46,000 crore as interest from those who filed their returns after the due dates.
Now the taxpayers have been receiving notices demanding for interest payments even if it is as small as Rs 2 or Rs 6 in some cases.
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In one such GST notice sent to a brokerage firm, the notice reads: “Records indicate that you have filed your GSTR-3B return for the period 2019-20 after due dates, in which you have not calculated and paid your interest liability under section 50 of the CGST Act, 2017. You are advised to deposit the interest amount of Rs 5.9858630140000004, calculated as per provisions of section 50 of the CGST Act, 2017.” Interestingly, up to 14 decimal places were calculated on the amount.
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The notice also warns of legal action if the amount is not deposited. “In case the opportunity for voluntary compliance as suggested is not availed, appropriate legal action for recovery of interest due to delayed filing of return shall be initiated,” the notice says.
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Rajat Mohan, partner at CA firm AMRG & Associates, whose clients also have received similar notices, says the notices seem to have been computer-generated and therefore notice for non-payment of dues are as small as Rs 6. However, he said, the payments will be made by his clients.
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Pritam Mahure, a Pune-based CA, says: “It’s unfortunate that taxpayers are expected to invest time in replying these kinds of avoidable notices.” One of his clients got notice for payment of a few paise.
