Office of the,

Dy. Commissioner of State Tax, FORT_501,

Nodal Division-1, A-14, 5th Floor, Old Building
GST Bhavan, Mazgaon, Mumbai-10.
Tel. 022-23760513.
E-MAIL ID: - [email protected]
[email protected]
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FORM GST DRC-01
Show cause notice under section 73(1) of the Maharashtra Goods & Services Tax Act, 2017
(MGST Act, 2017) & Central Goods & Service Tax Act, 2017 (CGST Act, 2017)
[See Rule 142 of the Maharashtra Goods & Services Tax Rules, 2017 & Central Goods &
Services Tax Rules, 2017 ]

No.: DCST/FORT_501/SCRUTINY-2019-20/2024-25/B-971 MUMBAI DATE-: 29/05/2024

To
GSTIN: 27AADCB5528L2ZF
NAME: M/S. BE GOLD PRIVATE LIMITED
Address: Floor-3 9/11, 307, Shroff Mansion, Dhirubhai Parekh Marg,
Dawa Bazar, Kalbadevi, Mumbai-400002.
Email Id- [email protected]

Sub.: Show cause notice under section 73(1).

Reference: -
(1) Proceedings of Scrutiny of returns initiated u/s 61 of the GST Laws by issuance of Notice in
FORM-GST-ASMT 10 vide Ref. No. ZD270424041088G dated: 22/04/2024which is duly served
upon you through Common Portal.
(2) Intimation of tax ascertained as being payable under section 73(5) r/w Rule 142 in form DRC
(01A) issued by this office vide Reference No. ZD2705240499317, dated 24/05/2024 which is duly
served upon you through Common Portal.

The provision of both MGST and CGST Act are the same except for certain
provisions. Therefor unless a mentioned is specifically made to such dissimilar
provision, a reference to CGST Act would also mean a reference to same provision of
MGST Act. Further henceforth a reference to similar provision under CGST and
MGST Act would be mentioned as being under the “GST Act”. Further as per section
20 of IGST Act, provision of CGST Act is applicable mutatis mutandis for all purpose.
 (A)Background in brief-
M/s. B E Gold Private Limited having place of business situated at Floor-3
9/11, 307, Shroff Mansion, Dhirubhai Parekh Marg, Dawa Bazar, Kalbadevi,
Mumbai-400002 having GST No. 27AADCB5528L2ZF (herein after referred to
as "the taxpayer"). The taxpayer has shown his tax liability for outward supply in
GSTR-3B & GSTR-1 also availed ITC on Input & Input Services through GSTR-
3B which is also reflected in GSTR-2A and utilized the same towards payment of
outward Tax.
Whereas, during the proceedings of Scrutiny of Returns in your case, for the
F.Y. 2019-20 (from April-2019 to Mar-2020), discrepancies found are
communicated to taxpayer in form GST-ASMT-10 and accordingly you were
directed to furnish the reply on Common Portal. You have not submitted your reply
in ASMT-11 hence DRC (01A) as referred at Ref. No. 2 was issued. You have not
submitted the reply in form DRC-01A Part B.
(B) Parameter wise grounds and quantification of Tax & Interest liability

1. Excess Outward Tax shown in GSTR-1 than GSTR-3B:-

Issue in brief:
As per tax liability and ITC Comparison statement you have shown excess outward
tax in GSTR-1 than GSTR-3B as follows,

Tax Period Tax liability declared in GSTR-3B during the month Tax liability declared in GSTR-1 (other than reverse Shortfall (-)/ Excess (+) in liability (GSTR-3B -
[as per table 3.1(a)] charge supply) during the month [as per table 4A, GSTR-1)
4C, 5, 6C, 7, 9A, 9B, 9C, 10, 11]
IGST CGST SGST/UTGST IGST CGST SGST/UTGST IGST CGST SGST/UTGST
Apr-19 2,371,616.00 155,004.00 155,004.00 2,583,490.60 131,406.62 131,406.62 -211,874.60 23,597.38 23,597.38
May-19 2,406,392.00 112,983.00 112,983.00 2,406,390.42 112,985.85 112,985.85 1.58 -2.85 -2.85
Jun-19 549,318.00 24,754.00 24,754.00 549,316.65 24,753.91 24,753.91 1.35 0.09 0.09
Jul-19 543,487.00 647,411.00 647,411.00 543,199.98 645,661.99 645,661.99 287.02 1,749.01 1,749.01
Aug-19 1,411,627.00 2,083,642.00 2,083,642.00 1,410,701.40 1,791,291.83 1,791,291.83 925.60 292,350.17 292,350.17
Sep-19 1,019,539.00 1,802,647.00 1,802,647.00 1,352,514.69 1,816,445.91 1,816,445.91 -332,975.69 -13,798.91 -13,798.91
Oct-19 1,672,109.00 965,038.00 965,038.00 1,544,647.94 955,957.13 955,957.13 127,461.06 9,080.87 9,080.87
Nov-19 2,568,545.00 1,955,173.00 1,955,173.00 2,568,545.00 1,955,173.00 1,955,173.00 0.00 0.00 0.00
Dec-19 3,117,885.00 1,246,720.00 1,246,720.00 3,117,885.00 1,246,720.00 1,246,720.00 0.00 0.00 0.00
Jan-20 1,988,168.00 1,192,480.00 1,192,480.00 1,988,168.00 1,192,479.00 1,192,479.00 0.00 1.00 1.00
Feb-20 1,512,466.00 1,158,102.00 1,158,102.00 1,512,466.00 1,158,102.00 1,158,102.00 0.00 0.00 0.00
Mar-20 250,301.00 70,371.00 70,371.00 167,101.85 389,234.63 389,234.63 83,199.15 -318,863.63 -318,863.63
Total 19,411,453.00 11,414,325.00 11,414,325.00 19,744,427.53 11,420,211.87 11,420,211.87 -332,974.53 -5,886.87 -5,886.87

As per above mentioned table short payment of tax at Rs. 344748/- is still payable along
with applicable interest under section 50 of the MGST/CGST Act, 2017 as mentioned below :-
Act Tax Interest Total
CGST Act 5887 4450 10337
SGST Act 5887 4450 10337
IGST Act 332975 251729 584703
Total 344748 260630 605378
2. PARA 0126 - Excess claim of ISD ITC in GSTR-9 compared with GSTR-3B Issue
in Brief :-
While verifying GST returns this office is noticed that, there is mis-match of ISD ITC
between GSTR 9 table 6G and GSTR 3B , table 4a(4). Details are as under-
GSTIN/TIN 27AADCB5528L2ZF
mstr.reg_nam BE GOLD PRIVATE LIMITED
mstr.trade_nam BE GOLD PRIVATE LIMITED
fyear 2019-2020
mstr.gst_email_id [email protected]
mstr.gst_mob_num 9321156904
mstr.gst_auth_status_sc A
mstr.appr_auth STATE
mstr.jursd_cd MHCG0412
mstr.cntr_jursd_sc VN0301
gstr9.table_6g_isd_cgst 0
gstr9.table_6g_isd_sgst 0
gstr9.table_6g_isd_igst 0
gstr9.table_6g_isd_cess 0
gstr9.table_6g_isd_total 0
r3b_yr.r3b_isd_cgst 1665654
r3b_yr.r3b_isd_sgst 1665654
r3b_yr.r3b_isd_igst 0
r3b_yr.r3b_isd_cess 0
r3b_yr.r3b_isd_total 3331308
mismatch 3331308

The ITC to the extent of Rs. 3331308/- is not confirmed in GSTR 2A/GSTR-9 hence,
taxpayer is liable to pay in-eligible ITC credit along with applicable interest under section
50 of the MGST/CGST Act, 2017 as mentioned below :-
Act Tax Interest Total
CGST Act 1665654 1259234 2924888
SGST Act 1665654 1259234 2924888
IGST Act 0 0 0
Total 3331308 2518469 5849777

Legal Position:
Section 16(2)(C ) of GST Act:- Notwithstanding anything contained in this section, no
registered person shall be entitled to the credit of any input tax in respect of any supply
of goods or services or both to him unless,––
(c) subject to the provisions of 2[section 41 7[****]], the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through utilization of
input tax credit admissible in respect of the said supply; and
Section 41 of GST Act :-1[Availment of input tax credit
41. (1) Every registered person shall, subject to such conditions and restrictions as may
be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his
return and such amount shall be credited to his electronic credit ledger.
(2) The credit of input tax availed by a registered person under sub-section (1) in respect
of such supplies of goods or services or both, the tax payable whereon has not been paid
by the supplier, shall be reversed along with applicable interest, by the said person in
such manner as may be prescribed:
Provided that where the said supplier makes payment of the tax payable in respect of the
aforesaid supplies, the said registered person may re-avail the amount of credit reversed
by him in such manner as may be prescribed.]
Section 42. Matching, reversal and reclaim of input tax credit
As per the provisions of Section 42 of CGST Act, 2017, the ITC (inward supply) shown
in GSTR -3B Return filed by the taxpayer (Recipient) for the tax period should be matched
with the GSTR-2A auto populated after submitting the GSTR-1 return by the supplier
for the same tax period or any preceding tax period.
Section 73 of GST Act: 73. (1) Where it appears to the proper officer that any tax has
not been paid or short paid or erroneously refunded, or where input tax credit has been
wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-
misstatement or suppression of facts to evade tax, he shall serve notice on the person
chargeable with tax which has not been so paid or which has been so short paid or to
whom the refund has erroneously been made, or who has wrongly availed or utilized
input tax credit, requiring him to show cause as to why he should not pay the amount
specified in the notice along with interest payable thereon under section 50 and a penalty
leviable under the provisions of this Act or the rules made thereunder.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays
the said tax along with interest payable under section 50 within thirty days of issue of
show cause notice, no penalty shall be payable and all proceedings in respect of the said
notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by person
chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten
per cent. of tax or ten thousand rupees, whichever is higher, due from such person and
issue an order.
(10) The proper officer shall issue the order under sub-section (9) within three years
from the due date for furnishing of annual return for the financial year to which the tax
not paid or short paid or input tax credit wrongly availed or utilized relates to or within
three years from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty
under sub-section (9) shall be payable where any amount of self-assessed tax or any
amount collected as tax has not been paid within a period of thirty days from the due date
of payment of such tax.
Section 50 of GST Act:-Interest on delayed payment of tax.
50. (1) Every person who is liable to pay tax in accordance with the provisions of this Act
or the rules made thereunder, but fails to pay the tax or any part thereof to the
Government within the period prescribed, shall for the period for which the tax or any
part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen
per cent., as may be notified by the Government on the recommendations of the Council.
2[Provided that the interest on tax payable in respect of supplies made during a tax
period and declared in the return for the said period furnished after the due date in
accordance with the provisions of section 39, except where such return is furnished after
commencement of any proceedings under section 73 or section 74 in respect of the said
period, shall be payable on that portion of the tax which is paid by debiting the electronic
cash ledger.]
(2) The interest under sub-section (1) shall be calculated, in such manner as may be
prescribed, from the day succeeding the day on which such tax was due to be paid.
3[(3) Where the input tax credit has been wrongly availed and utilised, the registered
person shall pay interest on such input tax credit wrongly availed and utilised, at such
rate not exceeding twenty-four per cent. as may be notified by the Government, on the
recommendations of the Council, and the interest shall be calculated, in such manner as
may be prescribed. Hence interest U/s. 50(3) is levied at the rate of 18%.
Section 155 of GST Act: -Burden of proof.
155. Where any person claims that he is eligible for input tax credit under this Act, the
burden of proving such claim shall lie on such person.

(C)Cumulative Liability :-
Act Tax Interest Penalty Total
CGST Act 1671541 1263685 167154 3102380
SGST Act 1671541 1263685 167154 3102380
IGST Act 332975 251729 33297 618001
Total 3676056 2779099 367606 6822760

(D)Charging Paragraph:-

In view of above, M/s B E Gold Private Limited having GSTN -

27AADCB5528L2ZF is hereby required to show cause to the Deputy
Commissioner of State Tax, FORT_501, GST Bhavan, Mazgaon, Mumbai within
30 days from the receipt of this notice as to why, -
(i) Total Tax amount payable at Rs. 3676056/- should not be demanded
and recovered from him under section 73 of the GST Act, 2017
(ii) Interest payable at Rs. 2779099/- should not be levied thereon under
section 50 demanded and recovered from him under Section 73 of the GST Act,
2017
(iii) Penalty payable at Rs. 367606/- should not be imposed upon them under
section 73 of the GST Act, 2017
It may further be noted that as provided by section 73(8)
MGST/CGST Act, 2017, upon payment of said tax along with interest payable
within thirty days of issue of show cause notice, no penalty shall be payable and
corresponding proceeding in respect of the notice in form DRC 01 shall be deemed
to be concluded.
 However, upon failure to pay signified tax and interest, provision of section
73(9) MGST/CGST Act, 2017 shall be invoked. An order to determine amount of
tax, interest and penalty equivalent to ten percent of tax or ten thousand rupees,
whichever is higher shall be issued.

(E) Concluding Paragraphs:

M/S. B E Gold Private Limited is further directed to produce at the time of

showing cause, all the evidence upon which they intend to rely in support of their
defense. They should also indicate in their written reply whether they wish to be
heard in person, or through their legal representative, before the order is issued. If
no mention of the same is made in their written reply, it shall be presumed that no
personal hearing is desired by them and the case may be decided on the basis of
the evidence available on record, without affording them any further opportunity
in the matter.
If they fail to appear before the assessing authority within 30 days
from receipt of this notice the case will be decided ex-parte on the basis of evidence
available on the record.
This Show Cause Notice is issued without prejudice to any other action that
may be taken against them or any other person concerned with the matter under
the SGST, CGST or IGST act or any other Law for the time being in force.

Seal :

DHANAN Digitally signed

by DHANANJAY
JAY P P PALANDE
Date: 2024.05.29
PALANDE 12:28:17 +05'30'
Dhananjay P. Palande
Place: - Mumbai Deputy Commissioner of State Tax
Date: - 29/05/2024 Fort_501, Fort Div, Mumbai-10