GST Audit Summon query

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A user received a GST audit summon regarding a discrepancy in Input Tax Credit (ITC) for custom duty, which arose because it wasn't reflecting in GSTR-2A at the time. Despite the issue being clarified previously and the audit completed, the matter has resurfaced. The discussion explores whether the responsibility lies primarily with the assessee or the auditor, with the consensus leaning towards the assessee, especially if no defects are found in the audit report. The advice suggests providing a clear written explanation to the department, highlighting that minor procedural errors, even if they cause temporary discrepancies, are not uncommon and shouldn't necessarily lead to reversal of validly claimed ITC.

CA Parul Saxena

CA Parul Saxena (Querist)
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25 September 2021 Summon was received from GST Department in Jan 2021 at that time we discussed the matter and clarified. Now GST Audit for that year i.e. FY 19-20 also has been done annual return too has been filed but again the matter is arising..
I want to ask in this case whose responsibility will be greater of Auditor or Assessee?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2021 As such all the responsibility lies over assessee, unless any defect found in audit report.

CA Parul Saxena

CA Parul Saxena (Querist)
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25 September 2021 Summon was purely sent on comparison report basis....i have reported all ITC in GSTR3B of Custom Duty Input...but at that time custom duty input was not reflecting in 2A...so difference arises and the summon was sent..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2021 The same should have been clarified in footnote. Even now reply to that effect, clarifying no purposeful intention of hiding any fact.

CA Parul Saxena

CA Parul Saxena (Querist)
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25 September 2021 Do not know what govt wants...i just made a mistake instead of showing custom duty input in import of goods tab i have shown it in All other ITC and so it was reflecting in comparison report and difference was shown there in comparison report...But if assessee is eligible for custom duty input and he has taken and make the payment what is wrong in it?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2021 The procedure....
Not the final effect ...
Check if the problem gets solved by yourself; else consult any Tax Lawyer in your area, who can handle the case professionally. Good Luck ...

CA Parul Saxena

CA Parul Saxena (Querist)
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25 September 2021 The procedure ...not the final effect???...what does it mean...the problem is industry expect everything from company professionals like me who is filing returns..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2021 Yes, but department wants professionals to be 100% perfect. Not supposed to do any simple mistake; though the final effect may be nil.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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25 September 2021 Give a complete comparison to the department. No need to reverse any ITC if all has been taken validly. These things are starting in GST and they are inevitable. Not a single person in this whole country can claim that they have filed all returns correctly. So dont worry and reply to the department accordingly in writing.

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