Commissionerate of Taxes

Government of Telangana, India

Attachment to DRC 01

DIN GST/36ABUPT4818Q3ZE/20/1

Office details
Designation of the assessing officer
Circle
Division

Details of the Tax payer

SHARADA MECHANICAL ENGINEERING
Name
VEERASWAMY THEGULLA
Legal Name
36ABUPT4818Q3ZE
GSTIN

Financial Year 2019-20

You have filed annual return in GSTR-09 for the financial year 2019-20.

On examination of the information furnished in this return under various heads and also the information
furnished in GSTR-01, GSTR-2A, GSTR-3B, EWB and other records available in this office it is found that you
have not declared your correct tax liability while filing the annual returns of GSTR-09. The summary of
under declared tax is as follows:

SGST Rs.8992.00
CGST Rs.8992.00
IGST Rs.565364.00
CESS Rs.0.00
Total Rs.583348.00

The details of the above tax liability are as follows:

 1. Under declaration of output tax:

• Reconciliation of GSTR-01 with GSTR-09:

The outward supplies turnover declared in GSTR-01 is greater than net outward supplies information
furnished in GSTR-09 and arrived at box (5N+10-11) above. This amount is therefore proposed to be taxed
as under declared outward supplies as follows:

S.No Issue SGST CGST IGST CESS Total

1 2 3 4 5 6 7
Tax on Outward
1 supplies declared in 540.00 540.00 4790167.00 0.00 4791247.00
GSTR-01 for the FY
Less tax on Outward
2 supplies arrived in 540.00 540.00 4224803.00 0.00 4225883.00
GSTR-09 (5N+10-11)
3 Difference (1-2) 0.00 0.00 565364.00 0.00 565364.00

2. Excess claim of ITC:

The excess input tax credit (ITC) claimed on account of non-reconciliation of information

Under Sec 16(2)(c) every registered person shall be entitled to take credit of ITC on supply of goods or
services to him subject to the condition that the tax charged in respect of such supply has been actually
paid to the Government either in cash or through utilization of ITC admissible in respect of such supply.

It is observed that the taxpayer has not correctly availed input tax on his inward supplies on reconciliation
of turnovers in GSTR-09.

• Under declaration of Ineligible ITC:

Under Sec 17(5) of the SGST Act, 2017 input tax credit shall not be available in respect of the list of
commodities & services mentioned therein subject to certain conditions.

It is seen from GSTR-09 and other information that they have claimed ITC on these commodities and
therefore the ITC claimed on these commodities or services is proposed to be recovered.

S.No Commodity/Service HSN/SAC code SGST CGST IGST CESS Total

1 2 3 4 5 6 7 8
Motor Vehicle Insurance
1 997134 1215.00 1215.00 0.00 0.00 2430.00
Service
2 Airlines travel 996425; 996426 892.00 892.00 0.00 0.00 1784.00
 Table no. in
S.No Issue SGST CGST IGST CESS Total
GSTR-09
1 2 3 4 5 6 7 8
A Total ineligible ITC u/s 17(5) 2107.00 2107.00 0.00 0.00 4214.00
7E or {Sum of 4D
(1) of GSTR 3B of
B Ineligible ITC declared all months in FY} 0.00 0.00 0.00 0.00 0.00
which ever is
higher
“If (SL.No A – Sl.NO
B >0) then Lower
of {SL.No A – Sl.NO
B} or {(Sum of 4C
of GSTR 3B of all
C Difference/excess ITC claimed months in current 2107.00 2107.00 0.00 0.00 4214.00
FY) – (13-12 of
Previous FY GSTR-
09) + (13-12 of
current FY GSTR-
09)}”

• ITC claimed from cancelled dealers, return defaulters & tax non payers:

Under Sec 16(2)(c) every registered person shall be entitled to take credit of ITC on supply of goods or
services to him subject to the condition that the tax charged in respect of such supply has been actually
paid to the Government either in cash or through utilization of ITC admissible in respect of such supply.

However as seen from the office records, it is observed that you have taken ITC from the tax payers who
have not paid tax on their outward supplies to you.

S.No Issue SGST CGST IGST CESS Total

1 2 3 4 5 6 7
Supplier registration
1 cancelled before date of 6885 6885 0 0 13770
invoice
Supplier failed to file
GSTR-3B and did not pay
2 0 0 0 0 0
tax on the invoices
declared in GSTR-01
Supplier filed GSTR-3B
with Nil turnover and did
not declare or pay tax
3 0 0 0 0 0
corresponding to the
invoices declared in
GSTR-01
4 Total(S.NO. 1+2+3) 6885 6885 0 0 13770
The above amount of ITC is proposed to be recovered.
Summary :
The total tax payable on account of these deficiencies after giving credit to the payments made in cash
and ITC adjusted is arrived as follows:

S.No Issue SGST CGST IGST CESS Total

1 2 3 4 5 6 7
Total tax due in
(Under declaration of
8992.00 8992.00 565364.00 0.00 583348.00
output tax) + (Excess
claim of ITC) above
(The detailed workings of the above in tabular form are attached as Annexure-B)

Therefore it is proposed to assess the registered tax payer for the net tax payable indicated above under
Section 73 of the SGST/CGST Act. The registered tax payer may therefore pay the tax along with interest in
DRC-03. However, If the registered tax payer is not agreeing with the proposals in this notice they may file
their objections in DRC-06 within (15) days from the date of receipt of this notice. A draft standard format
is also attached for filing your response along with your detailed reply.

Name :

Designation :
 Details of R1 Vs GSTR-09 Date: 07-02-2024 Amount in Rupees

GSTIN : 36ABUPT4818Q3ZE
Name : SHARADA MECHANICAL ENGINEERING FY : 2019-20
GSTR-01
S.No. Month SGST IGST
Total
CGST CESS
1 2 3a 3b 3c
540.00 -332.00
1 Jun, 2019 748.00
540.00 0.00
0.00 2704538.00
2 Sep, 2019 2704538.00
0.00 0.00
0.00 989062.00
3 Dec, 2019 989062.00
0.00 0.00
0.00 1096899.00
4 Mar, 2020 1096899.00
0.00 0.00
540.00 4790167.00
Total 4791247.00
540.00 0.00

Note:
SGST Tax = GSTR-01 SGST - SGST from [(5N+10)-11] of GSTR09
= 540.00 - 540.00
= 0.00

CGST Tax = GSTR-01 CGST - CGST from [(5N+10)-11] of GSTR09

= 540.00 - 540.00
= 0.00

IGST Tax = GSTR-01 IGST - IGST from [(5N+10)-11] of GSTR09

= 4790167.00 - 4224803.00
= 565364.00

CESS Tax = GSTR-01 CESS - CESS from [(5N+10)-11] of GSTR09

= 0.00 - 0.00
= 0.00
 Details of Ineligible ITC 17 (5) Date: 07-02-2024 Amount in Rupees

GSTIN : 36ABUPT4818Q3ZE
Name : SHARADA MECHANICAL ENGINEERING FY : 2019-20

R1 to this dealer
S.No. Seller Name Seller GSTIN Commodity / Service HSN code Month SGST IGST
Total
CGST CESS
1 2 3 4 5 6 7a 7b 7c
1215.00 0.00
1 TATA AIG GENERAL INSURANCE CO LTD 36AABCT3518Q1ZX Motor Vehicle Insurance 997134; Jun, 2019 2430.00
1215.00 0.00
52.00 0.00
2 AIX CONNECT PRIVATE LIMITED 36AALCA4699P1ZO Airlines Travel 996425; 996426; Oct, 2019 104.00
52.00 0.00
840.00 0.00
3 INTER GLOBE AVIATION LIMITED INDIGO 36AABCI2726B1Z3 Airlines Travel 996425; 996426; Jan, 2020 1680.00
840.00 0.00
2107.00 0.00
Total 4214.00
2107.00 0.00

Note:
SGST Ineligible ITC = Total SGST ineligible ITC u/s 17(5) from GSTR-01 to this dealer - 7E SGST of GSTR09
= 2107.00 - 0.00
= 2107.00

CGST Ineligible ITC = Total CGST ineligible ITC u/s 17(5) from GSTR-01 to this dealer - 7E CGST of GSTR09
= 2107.00 - 0.00
= 2107.00

IGST Ineligible ITC = Total IGST ineligible ITC u/s 17(5) from GSTR-01 to this dealer - 7E IGST of GSTR09
= 0.00 - 0.00
= 0.00

CESS Ineligible ITC = Total CESS ineligible ITC u/s 17(5) from GSTR-01 to this dealer - 7E CESS of GSTR09
= 0.00 - 0.00
= 0.00
 Details of ITC claimed from cancelled dealers Date: 07-02-2024 Amount in Rupees

GSTIN : 36ABUPT4818Q3ZE
Name : SHARADA MECHANICAL ENGINEERING FY : 2019-20

R1 to this dealer
S.No. Seller Name Seller GSTIN Cancelled Date Month SGST IGST
Total
CGST CESS
1 2 3 4 5 6a 6b 6c
6885.00 0.00
1 SPRING INDUSTRIES 36AHIPC8230B1ZU 2018-06-20 Mar, 2020 13770.00
6885.00 0.00
6885.00 0.00
Total 13770.00
6885.00 0.00