Alyssum Developers Faces ₹1.19 Crore GST Liability Notice
Alyssum Developers Private Limited (ADPL) has been issued a notice under Section 73 of the GST Act by the Assistant Commissioner of the State Tax Department, Maharashtra, citing a tax liability of over ₹1.19 crore for the FY 2020-21 (April 2020 – March 2021).
Reasons for the Tax Demand
- Excess ITC Claimed
Mismatch between GSTR 2A (supplier invoices) and GSTR 3B (self-reported returns).
- Ineligible ITC Claimed
Claims made on items not allowed under GST provisions.
- Reverse Charge Mechanism (RCM)
Failure to pay RCM liabilities in cash as mandated by GST law.
- Late Filing of Returns
Delays in submitting GSTR-1 (outward supplies) and GSTR-3B (monthly tax summary).
Potential Actions
Contesting the Liability:
ADPL is expected to challenge the tax demand, asserting its position before the GST authorities.
Disclosure Compliance:
The company disclosed the notice under Regulation 30 of the SEBI (LODR) Regulations, 2015, ensuring transparency with stakeholders.
Financial and Operational Implications
- Tax Liability
₹1.19 crore liability includes tax dues, interest, late fees, and penalties.
- Impact on Business
Ongoing disputes may affect cash flows and financial stability until resolved.
Conclusion
The notice underscores the importance of accurate GST compliance, particularly in ITC claims and RCM payments. Alyssum Developers will need to present a strong case to minimize penalties and resolve the issue promptly. This case also highlights the GST authorities’ focus on strict scrutiny of returns and timely filings.
