FORM GST DRC 06
[See rule 142]
Reply to the notice issued under section 73 (1) intimating discrepancies
in the return.
1. GSTIN 37AASFM6163A1Z5
2. Name M V P BUILDERS
3. Details of the notice Ref No. DIN3708052410472 Date: 08/05/2024
4. Tax Period F.Y.2019-20 to 2022-23
5. Reply to the discrepancies
Year Discrepancy Reply
2020-21 GSTR 1 VS GSTR 3B
2021-22 Restriction and Reversal of ITC
u/s 42, 43 of the AP GST Act,
2017
2022-23 Restriction and Reversal of ITC
u/s 42, 43 of the AP GST Act,
2017
6. Amount admitted and paid, if any –
Act Tax Interest Others Total
7. Verification-
I, BHOJA RAJU JAMI, hereby solemnly affirm and declare that the information given
hereinabove is true and correct to the best of my knowledge and belief and nothing has
been concealed therefrom.
Signature of Authorized Signatory
Date:
04th June 2024
To,
Deputy Assistant Commissioner (ST) - II
CHINAWALTAIR CIRCLE
Visakhapatnam-1 Division,
Visakhapatnam – 530040.
Respected Sir/Madam,
Sub: Reply to the Show Cause Notice issued in Form DRC-01 vide Ref No
DIN3708052410472 dated 08.05.2024 for the tax period 2019-20 to 2022-23.
a) Objection 1: - Comparison of turnovers and tax as per GSTR-1 and GSTR-3B
Year IGST CGST SGST Deviation
Identified
2020-21 - Rs.2,653/- Rs.2,653/- Rs.5,306/-
We would like to bring to your attention that the turnover and tax related to June 2019
and August 2019 were incorrectly reported in the GSTR-1 B2C of September 2020
instead of being shown as amendments for the financial year 2019-20. However, the
correct turnover and tax for June 2019 and August 2019 were accurately reported in
GSTR-3B for the financial year 2019-20. The tax liability for these months was duly paid
along with the applicable interest, ensuring that there was no shortfall in our tax liability
for the concerned period.
We acknowledge such clerical error, but we have declared correct taxable value in
GSTR3B and paid the tax there on as shown in the table below.
In addition, we would like to inform you that as per Notification No. 03/2019- Integrated
Tax (Rate) dated 29th March 2019 we are supposed to reduce one third portion of land
value form sale value and on the remaining sale value tax to be paid but we did not
deduct any land value from sale value which implies that we have paid excess tax.
Below are the sales values as per the sale deeds of the respective months, which have
been accurately reported and paid in GSTR-3B:
Note: The above-mentioned Taxable Values are inclusive of GST.
Additionally, we would like to highlight the following points for your kind consideration:
Sale for August 2019: In the case of sale relating to the month of August 2019, we have
paid taxes after deducting registration charges, as these charges are included in the sale
deed value as per the sale agreement.
Supporting Documentation: To substantiate the above, we are providing the sale
deeds relating to June 2019 and August 2019 as Annexure I and Annexure II,
respectively.
As there is no short payment of tax, we request your good selves to consider the same
and drop the proceedings.
b) Objection 2: - Restriction and Reversal of ITC u/s 42, 43 of the AP GST Act,
2017
Year IGST CGST SGST Deviation
Identified
2021-22 - Rs.21/- Rs.21/- Rs.42/-
We have duly reversed the ITC as per our books. Furthermore, we want to clarify that
we did not claim any ITC for the financial year 2021-22. As there was no utilization of
ITC during the financial year 2021-22, we anticipate no issues arising from the non-
reversal of ITC. The question of misuse of ITC will not arise as we are in the tax bracket
of 1%/5% as per the relevant notification and we are not eligible to utilize any ITC.
c) Objection 3: - Restriction and Reversal of ITC u/s 42, 43 of the AP GST Act,
2017
Year IGST CGST SGST Deviation
Identified
2022-23 - Rs.2,27,000/- Rs.2,27,000/- Rs.4,54,000/-
We confirm that we have duly reversed the Input Tax Credit (ITC) in accordance with our
records. Additionally, for the financial year 2022-23, we did not claim any ITC.
Should there be any concerns regarding this matter from the financial year 2024-25
onwards, we assure you that we will promptly adhere to the guidelines outlined in GSTR-
2B and reverse the ITC accordingly.
However, whatever credit available in GSTR2A/B is reversed herewith in column 4B (1) and
hence we request you to drop the issue.
Considering the above submissions and explanations provided by us, we request your good
selves to set aside the afore-mentioned proceedings Therefore, we request your good
selves’ officer to kindly drop the further proceedings.
Thanking you,
For MVP Builders,
Authorized Signature
