ADT/GST/2966/2023-GR 1-CGST-ADT-CIR-VNS-ADT-KANPUR

I/1738860/2023

कार्यालय सहायक आयुक्त

OFFICE OF THE ASSISTANT COMMISSIONER
केन्द्रीय मालएवं सेवाकर लेखा परीक्षा आयुक्तालय, कानपुर सर्कि ल-वाराणसी
CENTRAL GOODS SERVICE TAX AUDIT COMMISSIONERATE, CIRCLE-VARANASI
एस-8/114, प्लाटनंबर- 21-22 इंदिरानगर, खजरू ी (डी.आई.जी. कालोनी) वाराणसी-221002
S-8/114 PLOT NO. 21-23 INDRA NAGAR, KHUJURI (DIG COLONY) VARANASI-221002
मेल / MAIL auditgstvns@gmail.com
File No. ADT/GST/2966/2023-GR-1-CGST-ADT-CIR-VNS-ADT-KANPUR
Form GST ADT–02
[See Rule 101(5)]

Part-I
1 Final Audit Report No. & Date 83/GST/GR-1 VARANASI/2023-24 Dated 21.12.2023
2 Name of the Tax Payer [Legal Name] The Kakad And Company
3 Name & Address of the Tax Payer The Kakad And Company
[Trade Name] Shop No.1 Guru Kripa Complex, Nadasar, Varanasi
An
GSTIN 09AABFT2653D1ZD (Registered on 01/07/2017)
d
5 Constitution of the Business Partnership Firm
6 Type of Taxpayer [Manufacturer / Service Supplier / Trader
Provider / Dealer]
7 Category [Large / Medium / Small] Small
8 Report No.[103-A/103-B/103-C-103-D/LRP] Allotted through AIO from the List of 166 Units
9 Risk Parameter P07(1), P08(2), P09(3) & P34(2)
10 Commissionerate / Division / Range Varanasi / Varanasi / North
11 Circle / Group Varanasi / Group-I
12 Goods / Services Supplied Distributor of Exide Battery, UTL Solar System Etc.
(SAC Code 8507, 8541 Etc.)
13 E-mail thekakadcompany@hotmail.com
14 Period of Last Audit Second Audit under GST
15 Period of Current Audit April-2018 to March-2022
16 Date of Audit 07.11.2023, 08.10.2023 & 09.11.2023
17 No. of Paras 02
18 Detection [in Rs.] Rs. 21,878
19 Recovery [in Rs.] Rs. 21,878
20 Name of Auditors Ajay Shukla. Superintendent & Rahul Mishra, Inspector
21 Date of MCM 01.12.2023

Part-II
Sl. Revenue Agreement / Disagreement
Gist of Objection Conclusion of the Dept.
No. Involved by the Assessee (Yes/No)
1 Party has late filed GSTR-1 Returns Late Fee The party accepted their Para has been approved
for the month of Jul-2020 & Aug- Rs. 4,800 mistake and deposited late and settled in the MCM
2020 contravening the provisions of fee amounting to Rs. 4800 held on 01/12/2023. No
section 37 of the CGST Act read vide DRC-03 Entry No. dues are pending
with rule 59 of the CGST Rules. DC0911-230093641 Dated against this para.
Thus late fee prescribed under 15/11/2023.
section 47(1) is proposed to be
recovered from them.
2 Party has contravened the provisions ITC The party accepted their Para has been approved
of section 16(2) of the CGST Act by Rs 11,310 mistake and deposited and settled in the MCM
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I/1738860/2023
taking excess ITC in GSTR-3B + excess ITC amounting to held on 01/12/2023. No
compare to credit available in their Interest Rs 11310 along with dues are pending
GSTR-2A/2B of FY 2020-21. Thus Rs. 4,071 interest of Rs 4071 and against this para.
the excess credit availed by the + penalty of Rs 1697 vide
party is liable to be demanded and Penalty DRC-03 Entry No. DI091-
recovered under section 74(1) of the Rs. 1,697 1230078525 & DC091123-
Act along with interest and penalty. 0093641 Dt. 15/11/2023.

Para-1: On scrutiny of GSTR-1 Return it was observed that the party has filed the said return beyond the
prescribed date and without payment of appropriate late fee. The detail of GSTR-1 late filed by the party
during the period from 2020-21 is given in the below table:

Date of Late fee

Month Due Date Delay (In Days)
Filing CGST SGST Total
Year Jun 11.07.2020 20.07.2020 9 900 900 1800
Jul 11.08.2020 26.08.2020 15 1500 1500 3000
Total 2400 2400 4800
In terms of section 47(1) of the CGST Act, if any registered fails to furnish the details of outward or inward
supplies required under section 37 or section 38 or return required under section 39 or 45 by the due date shall
pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum
amount of five thousand rupees. In view of the above party is liable to pay late fee amounting to Rs. 4,800
(Central Tax Rs. 2400 + State Tax Rs. 2400) but they failed to do so henceforth the aforementioned late fee is
liable to be demanded and recovered under section 73(1) read with section 47(1) of the said Act. The above
anomaly was communicated to the party at the time of audit and they accepted their mistake and deposited
late fee amounting to Rs. 4,800 vide DRC-03 Entry No. DC0911230093641 Dated 15/11/2023. Para has been
approved and settled in the MCM held on 01/12/2023. No dues are pending against this para.

Para-2: On scrutiny of GSTR-2A/2B and Tax Liability & ITC Comparison Chart (verified from the GST
portal) for the year 2020-21 it is observed that the party had claimed excess credit (ITC) amounting to Rs.
11,310 (including IGST+CGST+SGST) pertaining to inward supply of goods in GSTR-3B Returns in excess
to what accrued through GSTR-2A/2B, as evident from the return, which indicates that the suppliers had
failed to upload details of their “outward supplies” in their GSTR-1 Returns within stipulated period in terms
of proviso inserted below Section 16(4), ibid. Further, ITC that does not accrue to the party electronically
signifies that the tax was actually not paid to the Government on such supplies and one of the essential
conditions, as enumerated in Section 16(2)(c) of the CGST Act that tax charged in respect of supplies should
actually be paid to the Government but it was not satisfied. The party was requested to furnish requisite
records in pursuance to CBIC Circular No. 183/15/2022 dated27.12.2022 and 193/05/2023 dated 17.07.2023
for verification and also to ascertain the actual physical movement of goods, genuineness of transportation an
payment made to the transporter for such goods, acknowledgement of taking delivery of goods, payment of
goods made to the suppliers but they failed to furnish the same. The party has willfully and deliberately
claimed and utilized ITC on the aforesaid supplies without having tax-paying documents, henceforth excess
ITC amounting to Rs 11,310 (including IGST+CGST+SGST) is liable to be demanded and recovered under
section 74(1) of the CGST Act along with interest and penalty. Interest on the said excess claimed by the
party is charged since they did not have sufficient balance in their credit ledger. The above anomaly was
communicated to the party at the time of audit and they accepted their mistake and deposited excess ITC
amounting to Rs 11,310 along with interest of Rs 4,071 and penalty of Rs 1697 vide DRC-03 Entry No.
DI0911230078525 & DC09-11230093641 Dated 15/11/2023. Para has been approved and settled in the
MCM held on 01/12/2023. No dues are pending against this para.

(Ravi Bhushan)
Assistant Commissioner
CGST Audit Circle Varanasi

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