ADT/GST/2894/2023-GR 1-CGST-ADT-CIR-VNS-ADT-KANPUR

I/1797611/2024

कार्यालयसहायकआयुक्त
OFFICE OF THE ASSISTANT COMMISSIONER
केन्द्रीय माल एवं सेवाकर लेखा परीक्षा आयुक्तालय, कानपरु 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@[Link]
File No. ADT/GST/2894/2023-GR-1-CGST-ADT-CIR-VNS-ADT-KANPUR
Form GST ADT–02
[See Rule 101(5)]

Part-I
1 Final Audit Report No. & Date 91/GST/GR-1 VARANASI/2023-24 Dated 17.12.2023
2 Name of the Tax Payer [Legal Name] Awadhesh Jaiswal
3 Name & Address of the Tax Payer Bindu Agro Industries, Plot No. K-5 Industrial Area,
[Trade Name] Ramnagar, Chandauli-221011 (U.P.)
4 GSTIN 09AGZPJ5336M2ZG (Registered on 01/07/2017)
5 Constitution of the Business Proprietorship Firm
6 Type of Taxpayer [Manufacturer / Service Manufacturer & Supplier
Provider / Dealer]
7 Category [Large / Medium / Small] Large
8 Report No.[103-A/103-B/103-C-103-D/LRP] Allotted through AIO from the List of 166 Units
9 Risk Parameter P01(1), P09(1), P23(2) & P26(1)
10 Commissionerate / Division / Range Varanasi / Varanasi / Chandauli
11 Circle / Group Varanasi / Group-I
12 Goods / Services Supplied Maize, Maize Groats, MaizeSuji, Rice Suji, Maize
Flour Etc. (SAC 11031300, 11031900, 11029000 Etc.)
13 E-mail [Link]@[Link]
14 Period of Last Audit First Audit under GST
15 Period of Current Audit July-2017 to March-2022
16 Date of Audit 28.11.2023, 29.11.2023 & 30.11.2023
17 No. of Paras 03
18 Detection [in Rs.] Rs. 18,464
19 Recovery [in Rs.] Rs. 18,464
20 Name of Auditors [Shri] Ajay Shukla. Superintendent
Rahul Mishra, Inspector
21 Date of MCM 03.01.2024

Part-II
Sl. Revenue Agreement / Disagreement Conclusion of the
Gist of Objection
No. Involved by the Assessee (Yes/No) Department
1. Party has contravened the provisions Tax Yes, party deposited tax of Rs Para has been
of section 9(3) of the CGST Act read Rs 6,660 6660 along with interest of Rs approved and
with Notification No.13/2017-CT (R) + 4901 and penalty of Rs 900 vide settled in the
dated 28.06.2017 by not-paying tax Interest DRC-03 Entry No. DC09122300- MCM held on
under ‘reverse charge’ on ‘Legal Fee’ Rs 4,901 28262 dated 23/11/2023. No dues 3.1.2024. No due
paid to the Advocates during the + are pending against this para. are pending
period 01/7/2017 to 31/3/2021. Thus Penalty against this para.
tax on the said supply is proposed to Rs 900
be demanded and recovered under

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section 74(1) of the CGST Act with
interest and penalty.
2. Party has contravened the provisions Interest Yes, party deposited interest of Rs Para has been
of section 50(1) of the CGST Act by Rs. 103 103 vide DRC-03 Entry No. DC- approved and
not paying appropriate interest on 0912230028262 dated 23/11/2023 settled in the
late payment of tax from cash No dues are pending against this MCM held on
account. para. 3.1.2024. No due
are pending
against this para.
3. Party has late filed GSTR-1 Returns Late Fee Yes, party deposited late fee of Rs Para has been
for the period from Jul-2019 to Mar- Rs. 5,900 5900 vide DRC-03 Entry No. DC- approved and
2022 contravening the provisions of 0912230028262 dated 23/11/2023 settled in the
section 37 of the CGST Act read with No dues are pending against this MCM held on
rule 59 of the CGST Rules. Thus late para. 03.01.2024. No
fee prescribed under section 47(1) of due are pending
the CGST Act read with Notification against this para.
No. 4/2018-CT dated 23.1.2018 is
proposed to be recovered from them.
Para-1: On scrutiny of Profit Loss Account of the Balance Sheet and corresponding Ledger of F.Y. 2017-18
(wef. 1/7/2017), 2018-19, 2019-20 and 2020-21 it is observed that the party has incurred expenses on ‘Legal
Fee’ which was paid to the Advocates, however when the same was reconciled with GSTR-1, GSTR-3B,
GSTR-9 and GSTR-9C Return(s) it is observed that tax was not paid on the said supply under reverse charge.
The details of payment made to the Advocates are given below:
Year Legal Fee Paid to Advocates (In Rs.)
2017-18 (wef.1/7/2017) 9000
2018-19 9000
2019-20 9000
2020-21 10000
Total 37000
In terms of section 9(1) of the CGST Act, 2017 read with of Notification No. 11/2017-Central Tax (Rate)
dated 28.06.2017‘services supplied by the advocates’ are subjected to tax at the rate of 18 per cent and
classified under SAC Group Code 9982. Service supplied by Advocate(s) has been defined as–an advocate,
including a senior advocate by way of representational services before any court, tribunal or authority,
directly or indirectly, to any business entity located in the taxable territory, including where contract for
provision of such service has been entered through another advocate or a firm of advocates, or by a firm of
advocates, by way of legal services, to a business entity. Further, the said supply was brought under ‘Reverse
Charge’ by virtue of section 9(3) of the Act read with Notification No. 13/2017-Central Tax (Rate) dated
28.06.2017. In view of the above, the party was required to pay tax amounting to Rs. 6,660 (including
CGST+SGST) but they failed to do so, henceforth, the said tax is liable to be demanded and recovered from
them by invoking extended period provisions contained under section 74(1) of the Act along with interest and
penalty. When the above anomaly was communicated to the party at the time of audit then they accepted their
liability and voluntarily deposited tax amounting to Rs 6,660 along with interest of Rs 4,901 and penalty of
Rs 900 vide DRC-03 Entry No. DC0912230028262 dated 06/12/2023. Para has been approved and settled in
the MCM held on 3.1.2024 and no due are pending against this para.

Para-2:On scrutiny of GSTR-3B Return and Cash Ledger for F.Y. 2020-21 &2021-22 it is observed that he
the party has belatedly deposited tax from cash account on several occasions contravening the provisions of
section 50(1) of the CGST Act. The details of delayed payment of tax and interest payable are given as under:
Tax Paid Actual Date
Year Month Due Date Delay In Days Interest Payable
(Cash) of Filing
JUN 13750 20/07/2020 22/07/2020 2 13.56
2020-21 OCT 15001 20/11/2020 21/11/2020 1 7.40
MAR 6450 20/04/2021 06/05/2021 16 50.89
APR 1926 20/05/2021 07/06/2021 18 17.10
2021-22
JUN 13750 20/07/2021 22/07/2021 2 13.56
TOTAL 102.51

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The above anomaly was communicated to the party at the time of audit and they accepted their mistake and
deposited interest of Rs 103 vide DRC-03 Entry No. DC0912230028262 dated 06/12/2023. Para has been
approved and settled in the MCM held on 3.1.2024. No due are pending against this para.

Para-3: 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 and 2021-22 is given in the below table:
Actual Date of Delay In Late Fee @ 25 Per Day (U/N
Year Month Due Date
Filing Days 4/2018-CT DT. 23/1/2018)
JUL 11/08/2019 12/08/2019 1 50
2019-20 SEP 11/10/2019 12/10/2019 1 50
OCT 11/11/2019 12/11/2019 1 50
JUL 11/08/2020 12/08/2020 1 50
SEP 11/10/2020 31/10/2020 20 1000
2020-21 OCT 11/11/2020 19/11/2020 8 400
NOV 11/12/2020 18/12/2020 8 400
DEC 11/01/2021 25/01/2021 15 750
FEB 11/03/2021 12/03/2021 1 50
APR 26/05/2021 07/06/2021 12 600
MAY 26/06/2021 02/07/2021 6 300
JUN 11/07/2021 12/07/2021 1 50
2021-22 JUL 11/08/2021 17/08/2021 6 300
OCT 11/11/2021 16/11/2021 5 250
NOV 11/12/2021 24/01/2022 13 650
DEC 11/01/2022 29/01/2022 18 900
JAN 11/02/2022 12/02/2022 1 50
TOTAL 5900

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, however vide Notification No. 4/2018-Central Tax dated 23.01.2018 the said
lete fee was reduced to fifty rupees (including Central & State Tax). In view of the above party is liable to pay
late fee amounting to Rs. 53,000 (including Central Tax + State Tax) 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 of Rs 5,900 vide DRC-03 Entry No. DC0912230028262 dated 06/12/2023.
Para has been approved and settled in the MCM held on 3.1.2024. No due are pending against this para.

(Ravi Bhushan)
Assistant Commissioner
CGST Audit Circle Varanasi

Copy forwarded for information and necessary action to:

1. The Assistant Commissioner, CGST & Central Excise Division Varanasi on [Link].
2. The Superintendent, CGST & Central Excise, Range-Chandauli, Division Varanasi on [Link].

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