Escorts Kubota Ltd has received a show cause notice from tax authorities proposing the rejection of a ₹74.8 million refund under the Goods and Services Tax Act, raising compliance concerns for the engineering major.
Key Highlights:
- The notice was issued in Form GST RFD-08, indicating discrepancies in the refund application and supporting documents.
- Tax officials cited potential mismatches in returns, ineligible claims, and documentation gaps as grounds for proposed rejection.
- Escorts Kubota must respond via Form GST RFD-09 within 15 days to avoid ex parte rejection.
Regulatory Context:
- The notice is part of a structured GST refund process, ensuring taxpayers are heard before final orders are passed.
- If the company fails to reply or satisfy the officer’s concerns, the refund may be rejected through Form GST RFD-06.
Company Position:
- Escorts Kubota is expected to contest the notice, citing its adherence to GST norms and prior compliance history.
Sources: DisyTax, CAclubindia, TaxGuru, StudyCafe.