Deluge of GST notices to peak in Jan, wane post Apr
“The scrutiny notices might go down, and the only relevant ones may be the ones issued by investigating offices like Directorate General of GST Intelligence and other anti-evasion authorities applicable only in exceptional circumstances.
Unlike value-added tax, when yearly assessment was a must, under GST, yearly assessment is not mandatory. But considering the discrepancies in the initial years, scrutiny notices are being issued. The entities can clarify and respond to the notices and, in case of negative orders, can move to appellate level as well.
If we consider 2017-18 and 2018-19 primarily, the recovery percentage is high, but from 2019 onwards, the recovery will be low entities have matured, authorities have matured, and the system has become more formalised. So in the first two years, demand and recovery are quite high and definitely add to the Centre’s kitty, but in subsequent years, the demand and recovery may not be that much, ”
