Because of the regular changes to the method, GST registration and filing can be perplexing. Since we consider authorities to be experts, many of us blindly believe what they say. So, what happens if the authorities don’t follow the rules?
Authorities are rumored to be asking people to pay their entire GST liability in cash. With an announcement made on Saturday, the Finance Ministry put out the flames. The Finance Ministry said on Saturday that it has not given any instructions to officials to ask taxpayers to pay the full GST liability in cash, according to a recent development.
According to a study by news agency IANS, some GST officers are using unauthorized contact methods such as phone calls, WhatsApp, and text messages to ask taxpayers to pay their ‘maximum tax liability’ in ‘money.’
People reported receiving phone calls, WhatsApp messages, or regular messages instructing them to pay their full GST Registration liability in cash as soon as possible.
Without exemptions like input tax credit, the maximum GST liability is the highest amount you will be liable for (ITC). ITC is the tax that an individual pays on a purchase that can be used to offset the tax burden on sales. Although there are a number of drawbacks to using ITC, it does help to reduce the amount of tax that must be paid.
Financial Year Target
- When these authorities were questioned about it, they all gave the same answer: “To reach the GST collection goal for this fiscal year.”
- According to estimates, this was done to ensure that the fiscal year’s GST revenue generation targets were met.
- According to a source in the Finance Ministry, neither the Government nor the Central Board of Indirect Taxes and Customs (CBIC) have given their field formations any such orders. Despite the pandemic, the government has collected more than Rs. 1 lakh crore in GST in the last five months, which is a sizable amount. For the third time in three months, the GST collected has reached Rs.1.1 lakh crore. This is a good indication that our economy is emerging from the impact of the pandemic.
- Although this is encouraging news, it is not reasonable to expect people to pay their entire GST debt in cash in order to reach revenue collection goals. It’s also unacceptably rude to ask people through WhatsApp or phone calls.
- As a result, when people were asked to pay in cash, they were perplexed and concerned.
- When the Finance Ministry made an announcement on March 20, 2021, this issue was eventually resolved (Saturday).
- It has been reported that input tax credits (ITC) may be used to offset tax liabilities for the month of March. The use of ITC would be subject to the GST rules’ limitations.
- According to a report by PTI, the Finance Ministry said on Saturday that GST Registration taxpayers can use the Input Tax Credit available in their credit ledger to discharge their GST dues for the month of March.
- It was also explained that neither the CBIC nor the government had provided any authority instructions or powers to make such informal communications in order to collect the full GST liability in cash.