A manufacturing SME with a ₹15 lakh demand notice for "ineligible ITC
Problem:
GST department alleged wrongful Input Tax Credit (ITC) claims due to vendor non-compliance.
The notice threatened penalties and interest if unresolved in 30 days.
Our Solution:
Verified all purchase invoices and vendor GST compliance status.
Prepared a reconciliation report proving ITC legitimacy.
Represented the client in hearings with supporting documents.
Result:
✔ Notice fully dropped – zero penalty paid.
✔ Implemented ITC verification system to prevent future issues.