Recently, the Kerala High Court in the case of Pazhayidom Food Ventures Pvt Ltd, has permitted a GST taxpayer to pay tax dues in EMIs as its business has been badly hit by Covid-19. Such a ruling showed the humaneness of the authorities who have taken due cognizance of the financial hardship caused by the taxpayer.
Here, in this article, I have provided you with the specific sections related to initiation, recovery and payment of GST Dues.
Section 78 of the Act pertains to Initiation of Recovery Proceedings which provides that any amount payable by a taxable person in pursuance of an order passed shall be paid within 3 months from the date of service of such order failing which recovery proceedings shall be initiated.
Section 79; Recovery of Tax contemplates that if any amount payable by a person to the Government under any of the provisions of the Act and Rules made there under is not paid then the proper officer could recover the amount through the following modes:
In case the amount recovered is less than the amount due, then such amount will be apportioned among Central Government, State Government & Union Territory in proportion of the amount due to each authority.
According to Section 80, if the taxpayer cannot pay all the GST Dues (Tax/Interest/Penalty) in a lumpsum or within a stipulated time, then he can on an application filed to the Commissioner request for payment in instalments.
The commissioner may extend the due date for payment or allow the taxpayer to pay in monthly instalments not exceeding 24 months subject to payment of Interest and other conditions and limitations as may be prescribed.
However, if there is a default in payment of any one instalment on its due date, then the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.
Note: This option of paying in instalments is not available for dues under self-assessment. Any tax under self-assessment must be paid in one go. Option to pay in instalments is available for any liability calculated by the tax authorities during provisional/final assessments, scrutiny, audit etc.