- This topic has 7 replies, 7 voices, and was last updated 1 year, 3 months ago by
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LMy father used to operate a budget hotel earlier until 2019 (it’s now been converted into something else).
We were a part of Oyo, and were paying them commission monthly. We used that as an input credit.
Earlier last month my father’s business got audited (selected at random)- and they found that the details of Oyo (“Oravel stays”) were incorrect/non-existent/have been moved since- and we are being charged with a retrospective tax payment (the input credit) + penalty + interest totalling 10-11Lakhs.
We’re not sure how to proceed here – the auditor has given us two options – either to pay the entire amount in 2 days, or pay ~3 Lakhs (the GST input) and try to fight the case – however, the charge may be higher than 10Lakhs in this case ( they may point additional disrepancies). Additionally, there will be cost of lawyers, going to court etc.
This is coming quite of the blue, it’s been 6-7 years and we don’t have all the documents either, except TDS certificates filed with the name of Oravel stays
Could someone help us out regarding what to do/how to proceed, and if there is a genuine issue here? -
BHi, I have questions:
* Did you receive proper GST invoices from Oyo (with their GSTIN and tax amount)?
* Did you actually pay the GST amount to Oyo?
* Did the input credit reflect in your GSTR-2A at that time?
* Were the returns filed properly, and was the input credit claimed in good faith, based on documentation available at the time?
* Have you retained relevant invoices and payment records?If the answers to the above are yes, you should not pay and should ask the auditor for a formal explanation of their objections. Thereafter respond accordingly. If needed, appeal the order, or challenge it before the High Court.
If the responses to the above are broadly no, it is better to try and settle.
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LHey
1. Yes, but we don’t have all records. I’ve been able to find TDS certificates though.
2. Yes – will try to get the bank statement.
3. Will check this
4. Yes – the issue is that the Oyo GST to which the address was mapped got changed. Not an issue from our end.
5. Not entirely, as I explained above. We’re in touch with the Oyo folks right now but not sure how much help we will get.
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KHi,
1. You need to check with your CA or tax consultant about the audit order once.
2. See if you can fight this with assessing officer and if not then file an appeal.
3. Or else see if they can give you the order urgently and then you can take benefit of present amnesty scheme where only tax liability has to be paid. -
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PCA here.
This is casual on part of department. Fight the scn and audit objectives and you will win. You should invoice, tax should be reflected in GSTR-2A (you can download from gstn portal). You should have paid tax to your supplier. Your supplier should have filed their gstr-3b (you can check that from your gstr-2A or from gstn portal>>user services>>>search taxpayer>>>return filing history).
This is causal on part lf department. I suggest to fight it out. So far as allegation of non-existent of supplier, your supplier maybe a private company and you can obtain data from MCA portal about whereabouts of director and company.
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