The Central Board of Indirect Taxes and Customs (CBIC) recently issued a circular addressing the non-payment of GST by suppliers. The circular, dated May 3, 2021, is aimed at curbing the practice of fraudulent non-payment of GST by suppliers.
The circular states that non-payment of GST by suppliers not only leads to loss of revenue for the government but also affects other businesses in the supply chain. The circular focuses on identifying and penalizing suppliers who are not paying GST on their supplies.
The circular also states that businesses should ensure that they are dealing with genuine and compliant suppliers. They should also ensure that they are carrying out proper due diligence before entering into any business transactions.
The circular is a step towards ensuring compliance with GST laws and preventing fraudulent activities. It is also aimed at promoting fair competition in the market by ensuring that all businesses are compliant with GST laws.
Businesses should take note of the circular and ensure that they are compliant with GST laws. They should also ensure that they are dealing with compliant suppliers to avoid any disruptions in their supply chain.
In conclusion, the circular is a step towards ensuring compliance with GST laws and preventing fraudulent activities. It is a sign of the government's commitment to promoting fair competition in the market and ensuring that businesses are compliant with GST laws.
Definition of Exempt Supplies, Goods Inputs- Revised Draft GST Law
The Effects of Charging IGST in Place of CGST and SGST for Zero-rated Supplies
SETTS CURBSTONES - GST RATES HSN CODE 6801