Central Board of Indirect Taxes (CBIC) has notified that from 1st January, 2022, the government is empowered to send its recovery officials to business premises to collect GST without notice, in case the tax liability shown in the requisite form is less than the invoices, mentioned in the outward supply form.

Simply, if someone has reported invoices of Rs 1 crore in GSTR-1 but showed taxes on only Rs 1 lakh of sales in GSTR-3B, in this case, the government is not required to give notice. It will be empowered to send officials to his/her business premises to recover GST on Rs 99 lakh of sales.

Further, The Finance Act also has levied GST on clubs on the money collected from members, if the sum is not used for charitable purposes. This would also come into force in the new year. The notification would also debar the buyer to get an input tax credit for transactions, if the seller does not mention them in his/her form GSTR-1

The relevant provision in the Finance Act, 2021, will come into effect from 1st January, 2022, according to a gazette notification issued on Tuesday.


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