He further said that once the GST system generates “red flag” alerts, the information is also shared with the revenue department to alert taxmen to take appropriate steps.
“Wherever there is a difference between GSTR-3B and GSTR-1, GSTR-3B and e-way bill, reminder SMSes now go not only to the authorised signatories, but also to the promoters of businesses and directors on board. GST system automatically sends these SMSes three days after last date of filing of returns,” Kumar told PTI in an interview. The five system generated “red flags” include default in payment of tax and non-filing of GSTR-3B, and mismatch in the input tax credit (ITC) claimed by businesses vis-a-vis the returns filed by the supplier.
Discrepancy in GSTR-3B (summary returns) and GSTR-1 (supplies return), and generating e-way bill but not filing returns, are also the parameters based on which alerts are generated.
“This information we are also showing to the taxpayer on their dashboard. We started sending (SMSes) to promoters because maybe the promoters do not know. It may be the accounts guy or CFO who checks the dashboard. So we send it to promoters,” Kumar said.
Once the alerts are generated by the system, the SMSes are sent to the promoter and directors three days after the due date of filing of monthly Goods and Services Tax (GST) returns.
The system sends SMS alerts to promoters and directors of business and helps them to rectify the mistakes as many times the promoters are not aware whether the returns are being filed timely and correctly by the officer concerned, he said.
Explaining further, Kumar said for big businesses which have not filed GSTR-3B by the 20th of a month, reminders are sent to promoters and directors on the 23rd of that month.
“Again we check whether they have filed by 10th of next month. This helps us a lot, because if SMS goes to promoters, it has impact,” Kumar said.
The SMSes are sent every month and quarterly for regular and composition taxpayers respectively.
Separately, GST Network, the company which handles the technology backbone for the indirect tax regime, is also sharing information with the tax department about businesses which have not filed returns for two consecutive months.
With effect from August 22, 2019, the facility for generating e-way bill will be blocked for businesses which do not file GSTR-3B for two consecutive months.
Dubbed as an anti-evasion step, transporters and businesses are required to generate e-way bill for transporting goods more than Rs 50,000.
Currently there are 1.22 crore businesses registered under GST, of which 17.5 lakh are composition taxpayers.