For taxpayers, it marked a paradigm shift, ending countless visits to tax offices and offering seamless communication with time-bound action. However, the majority continue to face challenges in this transition, being technologically inept and dependent on third parties. While this gap cannot be narrowed overnight, one can heed the following simple but effective Do’s and Don’ts that go a long way in helping laypeople secure GST compliance and avoid hefty penalties. As the proverbial adage goes: prevention is better than cure.

 

DOs

 

· Reply to every single notice, however trivial or preliminary it may seem – Treat every single communication received on the GST portal as crucial and worthy of a detailed and comprehensive reply. Be it the GST cancellation of registration (GST REG-17 show cause notice), the ASMT-10 discrepancy notice, DRC-01A intimation notice, DRC-01 show cause notice, or its corresponding MOV-07 show cause notice in enforcement cases – ensure each is replied to. Aside from establishing bona fide intent on your part, it provides a cogent sequence of events and is of prime consideration before both the Appellate Authority and in courts.

· Do supply the complete information or documents sought, as long as they are within the bounds of the statute – Address the discrepancies by being open to and forthright in providing the documents or information sought. If need be, seek adequate time to respond. You will be surprised at how effectively it helps nip the problem in the bud in the majority of cases. However, engaging does not mean acquiescing, so raise queries or even objections where procedural infractions or substantive violations of statute are prima facie made out.

· If not operating the GST portal yourself, be sure to check with the accountant whether any proceedings are underway against you – Remember, a stitch in time saves nine. Doing so merely once every financial quarter (i.e., every three months, at the very minimum) will ensure that no final order, if issued, escapes your notice and becomes time-barred from appeal by way of limitation under Section 107 of the GST Act. Appeal is a valuable statutory remedy available to taxpayers; take care not to lose out on that right due to sheer laxity.

· Do keep abreast of your GST account – "Trust but verify" ought to be your guiding principle. If not familiar yourself, visit the government-approved GST Suvidha Kendras in your city or even your concerned tax office to cross-check the return filing status, information about the latest GST Act changes, amnesties, etc.Click Here To Follow Our WhatsApp ChannelAlso, ensure that either the mobile number or the email ID linked with your GST account is your own to receive portal notifications and updates.

· Do familiarise yourself with and be thorough about the basic facets of the GST Act – Remember, forewarned is forearmed. Be thorough with fundamentals like Input Tax Credit, reverse charge mechanism, composition scheme, etc. A little knowledge goes a long way in ensuring you’re not taken for a ride, and more importantly, makes one aware of their statutory rights and duties.

 

DON’Ts

 

· Don’t plead ignorance of law to escape liability – The law presumes everyone is aware of the law, as is clear from the fundamental legal principle ignorantia juris non excusat (i.e., ignorance of the law is not an excuse). Claiming you were not aware of a certain law, provision, order, etc., is no defence at all in strictly interpreted tax statutes. Having said that, bona fide errors, including those by way of mistake of fact, are distinguished from wilful evasion and may constitute a valid defence.

· Don’t seek to justify mistakes; focus on rectifying them – Take responsibility for missed returns, undeclared turnover/liability, and focus on making good your omissions or errors instead of seeking to justify them by citing accountant mistakes, medical grounds, etc. Remember, the GST regime is a self-assessment and self-declaration one, and provisions such as DRC-03 voluntary payment in case of tax shortfall, GSTR-9C reconciliation statement, etc., are available to taxpayers to mitigate penalties.

· Don’t fight shy of seeking professional guidance – Experts are there for a reason. Accountants ensure GST-compliant records, file returns, and help in tax planning. Lawyers are well-versed in legal drafting and judicial precedents required in GST litigation (SCN replies, appeals, etc.). Instead of reactive tax firefighting, seek tax advice proactively to minimise tax liabilities.

· Don’t fall into the trap of undermining the system – The digital interface was introduced precisely to map out an inter-connected web of business transactions to you. Creating multiple accounts to suppress sales will come to naught when your income tax statement reflects a higher tax figure. In the current interlinked, digital tax mechanism, evasion is not the answer; smart compliance is.

· Don’t shun or eschew tax news – The GST regime is constantly evolving – be it any amnesty or any amendment. Consume tax updates like you consume news about day-to-day affairs and inculcate them in your daily regime. After all, what affects your wallet affects you.

 

Adv. Palvi Ghonkrokta Attar

 

(The writer is an Advocate practising at the High Court of Jammu & Kashmir and Ladakh at Srinagar, specialising in GST law.)