Background

A manufacturing client approached our firm after receiving a notice of non-compliance from the GST department. They had failed to file GST returns for several quarters, resulting in a large penalty and interest. The client was in danger of having their business operations halted due to the mounting fines.

Challenges

GST Returns Overdue: The client had failed to file returns for several quarters, leading to significant penalties.

Potential Suspension of Operations: The client faced the possibility of their business operations being suspended.

Confusion with GST Requirements: The client struggled with understanding the correct filing process and the applicable tax rates.

Approach

Review and Rectification: We reviewed the client’s business transactions and ensured all GST returns were filed, including those from previous quarters.

Penalty Negotiation: We negotiated with the GST department to reduce the penalties by presenting a case for their reduced ability to comply due to a lack of understanding of the regulations.

Ongoing Compliance System: We implemented an ongoing compliance system for the client to ensure future GST filings would be accurate and timely.

Outcome

Penalty Reduction: We successfully reduced the penalties and interest owed by the client.

Business Continuity: The client avoided any operational disruption, and their GST status was regularized.

Sustained Compliance: The client now has a dedicated process for regular GST filing, preventing any future compliance issues.