Hi
Can you please share which machinery and /or services you had taken for Rs 2 lakh
to exactly understand your case
GST notice received. What to respond?
Hi, I registered GST as proprietor few years back. Could make some turnover in FY2018-19 & FY2019-20 and showed it in the GST filling. I could not make any turnover last year FY2020-21 so I filled 'Nil' return. But I purchased one machine & some services for Rs.2 lacs total in this period but I couldn't make any sales. Now I received a notice from government that says "You have made inward goods & service of 2 lacs rupees but didn't showed any outward supply. It is assumed that you are intentionally hiding your turnover and not paid tax to the government. You have to reply in 15 days otherwise legal action will be taken". What I should reply for this notice? Please advise.
Asked 2 years ago in GST
Dear Sir,
You may furnish a simple reply stating that on account of COVID-19 pandemic your business had taken a hit and hence turnover was zero.
I am assuming that your business had turnover again from FY 2021-22 onwards. This point should also be mentioned therein.
Further you may also counter challenge the issuer that since he has made such a grave allegation on you, he must substantiate the same to you for issuing such a notice and not on the basis of mere presumptions.
Please connect in case of any further details required to be discussed.
Thanks & Regards,
CA Aditya Dhanuka.
- What was the purpose of purchasing machinery and some services of Rs.2 lacs in FY 2020-21? Was it purchased for business or personal use? Did you availed ITC on such purchases?
- What was the reason for filing GSTR-1 NIL during FY 2020-21?
For detailed discussion, you may opt for phone consultation.
Please find the additional details here: Hollow block making machine and related accessories for about Rs.2 lacs. But I couldn't start this business because delay 3 reasons. Delay in receiving power connection. As per calculation, profit is very much less Rs.1 per stone. Could not finalize a technician for operating this machine. Also I could not focus properly because issues in my family health. Once I though to close this business and surrender the GST but convinced my self that I can establish the business in future so I was just filling 'nil return' just to retain my registration. In Taxfull.com, there is only one time I can add further comments. I can't write here again. So please advise what should I reply to the notice from GST (ASMT-10)? If they accept my reply what they will do? If they didn't accept my reply what they will do? Thank you.
Asked 2 years ago
Dear Sir,
Please refer my previous reply. Also you may provide the facts as mentioned above by you. If the reply is accepted the proceedings will drop.
If not, then they will issue you a notice for which you would need to submit further reply and would require professional assistance in that.
Please connect in case of any further details required to be discussed.
Thanks & Regards,
CA Aditya Dhanuka.
- What services/goods you sold in FY 2018-19 & 2019-20?
For detailed discussion, you may opt for phone consultation.
I think you should respond what you have mentioned here that business has not been started and no input has been utilized or refund has been applied hence it is very clear that one is not hiding anything.
Further, if they accept nothing will happen you can continue to file nil return but if they don't accept they will ask you to reverse credit with interest.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
Thank you.
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