Lately, while preparing a GST appeal for one of our clients, I came across a situation that got me thinking. The notices received were related to a few missed compliances — ITC vs. 2B mismatches and purchases from non-registered vendors. Similarly, during my time working in corporates, most litigations revolved around vendor reconciliation issues. In one such case, a client had applied for cancellation of GST registration but missed responding to certain clarificatory notices within the stipulated timeline. This oversight led to further litigation and added unnecessary costs — all of which could have been avoided.
The reason I am sharing these instances is simple: if clients focus on proper compliance — timely filing of returns, maintaining registrations, regularly checking vendor registration status, performing 2B reconciliation (and now with IMS introduced, leveraging that as well) — and stay vigilant about emails, messages, and the GST portal for any new notices or updates, they can significantly reduce the cost that is eventually borne due to negligence at the initial stage.
What is disheartening is that many clients do not prioritise proper compliance, and the fee of a qualified Chartered Accountant is often seen as a burden rather than mitigation of cost, risk, and future litigation. When compliance is handled efficiently and things run smoothly, it is assumed that nothing extraordinary is being done. Yet, the same client is willing to spend lakhs on litigation arising from non-compliance — a cost far greater than what proper compliance would have ever demanded.
What we truly need is a robust Chartered Accountant — one who manages everything seamlessly without constantly troubling the client, and who takes proactive steps before any adverse action from the department to safeguard the client from unnecessary investigations and litigation. When compliance is smooth, it becomes far easier to focus on deeper transactional and advisory work.
At the same time, Chartered Accountants deserve to be acknowledged when they are quietly and diligently managing your taxes in the background. This is a two-way relationship built on trust and responsibility.
Clients must engage Chartered Accountants who not only ensure compliance but also build proper SOPs to protect against unnecessary litigation — rather than taking a "dekh lenge, sab ho jayega" approach when errors arise.
There is a reason CPAs in the United States are paid significantly more — they are compensated for preventing future litigation, not just reacting to it.
Let us build a system founded on mutual respect and shared responsibility — one where compliance is a priority, not an afterthought.
Disclaimer: The content shared is based on personal understanding and experience. Readers are advised to seek professional advice before acting on the same.