Question 1

Why is there a mismatch between the turnover declared for the GST registration threshold and the actual turnover in books?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 22, 24 CGST Act. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 2

Why does the entity have multiple GSTINs on the same PAN without proper cross-charge between distinct persons?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 25(4), Sch I para 2 CGST Act. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 3

Why was registration not obtained for an additional place of business (godown/branch/depot)?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 25(2) CGST Act read with Rule 8. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 4

Why is there a delay in obtaining registration after crossing the threshold limit?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 25(1) CGST Act. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 5

Why is the principal place of business address on the GST certificate different from the actual operating premises?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 25(2), Rule 8/19 CGST Rules. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 6

Why has the registration been cancelled or suspended and not got revoked in time?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 29, 30 CGST Act, Rule 23. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 7

Why are tax invoices not containing all mandatory particulars prescribed under Rule 46?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 31 CGST Act, Rule 46 CGST Rules. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 8

Why is there a gap or non-sequential numbering in the tax invoice series?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 31 CGST Act, Rule 46(b). Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 9

Why are credit notes issued beyond the time limit prescribed under Section 34?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 34(2) CGST Act. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 10

Why are debit notes not linked/cross-referenced to the original invoice?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 34(3)/(4) CGST Act. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 11

Why is e-invoicing (IRN generation) not done despite applicability based on turnover threshold?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 31, Rule 48(4) CGST Rules, Notification on e-invoicing thresholds. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 12

Why is a Bill of Supply issued instead of a Tax Invoice for a taxable supply?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 31(3)(c) CGST Act, Rule 49. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 13

Why is there a difference between the invoice value as per books and the value declared in GSTR-1?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 37 CGST Act, Rule 59. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 14

Why are self-invoices not raised for inward supplies received from unregistered persons liable to RCM under Section 9(4)?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 9(4), 31(3)(f) CGST Act. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

Question 15

Why is ITC claimed without possession of a valid tax invoice or debit note as required under Section 16(2)(a)?

Accepted Answer

Refer to CGST Act section / rule and keep proper document records. Corrective step: Check compliance alignment with: Sec 16(2)(a) CGST Act, Rule 36. Statutory impact: Interest at 18% p.a. on delayed payments, and applicable late fees under Section 122.

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