CA Pankaj Kumar Rathore

ca-pankaj-kumar-rathore

The Goods and Service Tax is payable on a self-assessment basis. If the assessee pays the tax on self-assessment correctly then there will not be any problem. If there is any short payment, non-payment or wrong utilisation of input credit, then the GST authorities will initiate demand and recovery provisions against the assessee.

Provisions of demand under GST Act and the consequent recovery provisions are similar to the provisions of Service Tax and Central Excise Act. We are highlighting important provisions of demand under GST:

Section 73 Section 74
1 Where tax is:

  • not paid
  • short paid
  • erroneously refunded
  • +9credit wrongly availed or utilized

for reason other than fraud or any willful misstatement or suppression of facts,

Proper Officer (PO) shall serve notice requiring him to show cause as to why he should not pay the amount specified in notice along with interest and penalty.

Where tax is:

  • not paid
  • short paid
  • erroneously refunded
  • credit wrongly availed or utilized

for reason of fraud or any willful misstatement or suppression of facts,

Proper Officer (PO) shall serve notice requiring him to show cause as to why he should not pay the amount specified in notice along with interest and penalty equivalent to tax.

2 PO shall issue notice within 42 months from the end of the financial year. PO shall issue notice within 63 months from the end of the financial year.
3 Where notice is already issued, PO may serve statement for the other periods also then this statement shall be deemed to be service of notice, if ground relied upon are same as mentioned in notice. Where notice is already issued, PO may serve statement for the other periods also then this statement shall be deemed to be service of notice, if ground relied upon are same as mentioned in notice.
4 When person pay tax along with interest before service of notice and intimate PO, no notice shall be issued. When person pay tax along with interest and 15% penalty before service of notice and intimate PO, no notice shall be issued.
5 When person pay tax along with interest within 30 days of issue of SCN, no penalty shall be payable and all proceedings in respect of such notice shall be concluded. When person pay tax along with interest and 25% penalty within 30 days of issue of SCN, all proceedings in respect of such notice shall be concluded.
6 Maximum demand can be tax, interest and a penalty equivalent to 10% of tax or 10,000 whichever is higher. PO shall issue order within 3 years from the date of erroneous refund or within 3 years from the due date of furnishing of annual return in other cases. Maximum demand can be tax, interest and penalty equivalent to tax. PO shall issue order within 5 years from the date of erroneous refund or within 5 years from the due date of furnishing of annual return in other cases.
7 Where order served by PO, person pay tax along with interest and penalty equivalent to 50% of tax within 30 days of communication of order, all proceedings in respect of such notice shall be conclude

If you have any query, feel free to reach us at capankaj97@gmail.com

More Under Goods and Services Tax

Posted Under

Category : Goods and Services Tax (7377)
Type : Articles (17587)
Tags : goods and services tax (5860) GST (5461)

One response to “Demand under GST Regime”

  1. K.L.SETHI says:

    Very good article by Sh.Pankaj Rathore CA.

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts