Introduction: The Government of National Capital Territory of Delhi, through its Department of Trade and Taxes, has issued a policy update regarding the scrutiny of GST returns for the financial year 2017-18. This update provides essential information for taxpayers and officials involved in the process.
Detailed Analysis:
1. Show Cause Notices (SCNs): The Proper Officers have issued SCNs for the year 2017-18 as per the DGST Act. Taxpayers are granted 30 days to respond to these notices, and a personal hearing is mandatory before any adverse order.
2. Timing of Personal Hearings: Some SCNs fix personal hearing dates before the 30-day deadline. The update clarifies that personal hearings should occur after written replies, ensuring effectiveness.
3. Redundant Notices: Cases have arisen where SCNs pointed out discrepancies already addressed through FORM GST ASMT-10 notices or audit proceedings. It’s inappropriate to re-adjudicate settled issues.
4. Clarifications for Compliance: The policy provides detailed guidance for different scenarios, including cases involving ITC reversal and blocked credit based on HSN/SAC Codes or transactions with canceled taxpayers.
5. Personal Hearings and Record-Keeping: The Proper Officer must offer a personal hearing, record the proceedings, and make decisions based on the law.
6. Dropping Proceedings: In cases where notices need withdrawal, the Proper Officer can drop proceedings based on facts and case contents without a written submission or personal hearing.
7. Informing Taxpayers: Taxpayers must be informed when proceedings are dropped.
Conclusion: The Department of Trade and Taxes in the National Capital Territory of Delhi emphasizes compliance with legal provisions and guidelines, ensuring that taxpayers are not harassed, and due taxes are collected. This policy update aims to streamline the scrutiny of GST returns for the FY 2017-18 and maintain fairness and transparency in the process. Proper Officers are expected to strictly adhere to these guidelines, and non-compliance will result in strict action. The update serves to provide clarity and efficiency in the tax assessment process.
*****
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES
(POLICY BRANCH)
F.3/432/GST/Policy/2023/1048-1053
Dated- 31.10.2023
INSTRUCTION
Sub:- Scrutiny of GST Returns for the FY 2017-18-reg.
1. With reference to above mentioned subject, Proper Officers have issued show cause notices (SCNs) for the year 2017-18. Sub-section (8) of Section 73 of Delhi Goods and Service Tax Act, 2017 (hereinafter referred to as “DGST Act” in short) provides a time period of 30 days for the taxpayers to file a reply/representation in response to said SCN. Further, Sub-section (4) of Section 75 of the DGST Act states that a personal hearing must be given before passing any adverse order.
2. It has been observed that in some cases SCNs have been issued fixing date of personal hearing before the expiry of 30 days. It is hereby clarified that personal hearings before filing any written reply/representation would not serve any useful purpose.
3. Also, in some cases, SCNs have been issued pointing out discrepancies on which notices in FORM GST ASMT-10 were already issued earlier and proceedings had also been completed by issuing information in Form GST ASMT-12 and in cases where audit proceeding has been completed. Hence, it would not be appropriate to adjudicate issues that have already been decided/dropped under Section 61 of the DGST Act or stand settled in audit proceedings.
4. In this regard, the following clarifications are issued for compliance by all concerned :-
I. Cases where notices have been issued even after completion of audit proceedings, SCNs need to be withdrawn after following the required course of action on audit report.
II. Cases where notices have been issued after completion of scrutiny of return proceedings, SCNs need to be withdrawn to the extent of subject matter or issues which have already been covered in previous proceeding, after due verifications and recording of reasons.
III. In cases of ITC reversal, Proper Officer shall make due verification of input used for making taxable/non-taxable supplies or input used for non-business or personal purposes or making exempt supply.
IV. In cases of blocked credit where notices have been issued on the basis of HSN/ SAC Codes OR cases where transactions have been made with cancelled taxpayers, Proper Officer shall examine relevant facts along with supporting records and take decision on case to case basis, in accordance with law.
V. Proper Officer shall provide a personal hearing after filing of reply/representation by the taxpayer or after the expiry of period of 30 days, as the case may be. Moreover, before passing any adverse order, a personal hearing must be given to taxpayer in terms of Section 75(4).
VI. Proper Officer shall also duly record/document the proceedings of personal hearing.
VII. In cases where it comes/has been brought to the knowledge of Proper Officer that the notice is required to be withdrawn, the Proper Officer after recording reasons may, without any written submission of the taxpayer or any personal hearing, drop the proceedings on the basis of facts and contents of each case.
VIII. A taxpayer must be informed about dropping of proceeding without fail, wherever applicable.
5. All Proper Officers must strictly adhere to the legal provisions and relevant guidelines/circulars in this regard. Strict action will be taken for noncompliance. Moreover, it should be ensured that no harassment is caused to any taxpayer and due tax is received by the department.
This issues with approval of the Competent Authority.
(Karanjit Vadodaria)
Joint Commissioner (Policy)
F.3/432/GST/Policy/2023/1048-1053
Dated- 31.10.2023
Copy for information and necessary action to:-
1. A to the Principal Commissioner, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P. Estate Delhi – 110002.
2. All the Spl. /Addl. /Joint Commissioner, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P. Estate Delhi – 110002.
3. All ward Incharges/Proper Officers, Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P. Estate Delhi – 110002.
4. SSA (EDP), Department of Trade and Taxes, GNCT of Delhi, Vyapar Bhawan, I.P. Estate Delhi – 110002, for uploading on Department Website.
5. Guard file.
(Karanjit Vadodaria)
Joint Commissioner (Policy)
