GST department goes on tax demand overdrive

From Hindustan Unilever to ICICI Bank, HDFC Bank and Eicher Motors, almost all the big names of India Inc and thousands, if not lakhs, of smaller GST taxpayers have received tax demand on the eve of new year as authorities sought to meet the five-year deadline to raise claims, literally burning the midnight oil.

The notices range from mismatch of input tax credit, mismatch in turnover for various returns to demand for non-payment of tax on payments made to expats (in case of MNCs) for which demand has been raised from multinationals despite the confusion over their legality.

For instance, HUL has been slapped with a demand of over Rs. 400 crore. “HUL has been proactively compliant in discharging all its GST dues for seconded employees. The company believes it has strong merits to challenge the demand as per the order and will make an assessment to exercise its right to appeal or make submissions before relevant authorities against the order. The order has no material impact on financials as well as no impact on operations or other activities of the company,” a spokesperson said.

Read more at: The Times of India