GST notices from different states make life difficult for many companies

Companies are facing a daunting task in managing the increasing number of GST notices issued by various state departments. Taxation is primarily a centralized function within most companies, which makes it particularly challenging, especially for service companies, to segregate their businesses based on individual states.

Since the conclusion of GST compensations for states in July 2022, the number of such notices has seen a significant rise. States, now responsible for generating their own revenue, have become extremely proactive in sending notices to companies for even the slightest reasons. Experts predict that this trend may continue in the future.

States have intensified their efforts by examining GSTN data, cross-referencing it with income tax records, and conducting reconciliations, leading to increased issuance of notices to businesses.

As per the GST law, companies must register individually in every state, submit monthly returns, and make separate tax payments to each state. This results in individual states issuing notices to companies, unlike the previous tax regime, where only those selling goods in a state needed registration. Even service providers are now obligated to register in every state.

Also Read: Union government to set up online audit mechanism under GST

This situation poses significant challenges, particularly for companies operating in the service sector, such as banks, mortgage lenders, technology firms, back offices, and insurance companies.

The given timeframes for responding to these notices from various states are often inadequate, considering the extensive volume of information required and the need to provide reconciled data.

Upon review, it is evident that most of these GST notices demand data spanning five years, which is excessively voluminous. As a consequence, many corporations are encountering difficulties in locating and reconciling data from five years ago.

Pharmaceutical Exports from India

India is a big deal in the world of medicine and vaccines. It makes a lot of generic medicines and vaccines that are used everywhere. India is even called the "Pharmacy of the World" because its medicines are good quality and not too expensive. Despite some problems, like supply chain issues, India's medicine exports are doing well. The USA, Belgium, and South Africa are some of the top places buying Indian medicines. The government helps by running programs to make the medicine industry stronger. Groups like Pharmexcil and the Department of Pharmaceuticals also lend a hand. Their job is to make sure everyone can get good medicines without paying too much.

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