The surge in GST collections is partly attributed to the rising number of GST demand notices being issued to companies, prompting many to express their intention to appeal against these orders.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG India noted, “The sustained growth in GST collections, with the latest figures marking the highest collection ever, reflects the strength of the domestic economy. Notably, the growth from domestic transactions at 13.4 percent outpaces that from imports at 8.3 percent. Another contributing factor to this growth could be linked to the deadline for GST audits and the consequent issuance of notices during this period.”
Several companies have reported receiving GST demand notices from authorities, with many indicating their intent to challenge these orders.
For instance, Apollo Tyres disclosed receipt of an order from the Sales Tax Officer, Delhi, under the GST Act demanding GST payment and imposing a penalty of Rs 13.94 lakh. The dispute concerns input tax credit (ITC) utilization and other matters, according to the company. Apollo Tyres stated, “The company intends to appeal before the Appellate Authority in due course. The impact of this matter on the company’s financials, operations, or other activities is not material.”
Similarly, Crompton Greaves Consumer Electricals revealed receipt of an order from state tax authorities in Mumbai for the period from April 2018 to March 2019, imposing a demand of Rs 22.49 crore.
“Considering the merits of the case, prevailing laws, and advice from consultants, the company plans to appeal against this order before the Commissioner (Appeals) and anticipates favorable outcomes from the appellate authorities,” the company stated.