GST provisions have embedded the elaborate provisions for the recovery of tax under various situations has tax short paid or erroneously refunded or Input tax credit wrongly availed and non-payment of self-assessed or amount collected but not deposited to the Government. If such liability is assessed wrongly, it may be a result of taxescollected but not paid or short paid, input tax credit wrongly availed & utilised, erroneous refund claimed & subsequent to its identification, demand may be raised by GST officials. Sections 73 & 74 of the CGST Act, 2017, the circumstances under which a proper officer can serve a show cause notice for recovery of tax along with rest or penalty applicable.
SECTION 73:-
This section deals with determination of tax and its demand & subsequent recovery in situations resulting into:
> Taxes not paid;
>Taxes short paid;
>Tax erroneously refunded;
>Input tax credit wrongly availed or utilised;
>Recovery of interest payable which is not paid or partly paid or interest erroneously refunded.
But not involving any fraud, wilful misstatement or suppression of facts.
TIME LIMIT FOR ISSUE OF NOTICE, PENALTY AND ADJUDICATION UNDER SECTION 73
| Payment of Penalty | Amount of Penalty |
| Dues paid before issuance of show cause notice | No penalty |
| Dues paid within 30 days of issuance of show cause notice | No penalty |
| Dues paid after 30 days of issuance of order | 10% of tax dues or INR 10000 whichever is higher |
| Any other case | 10% of tax dues or INR 10000 whichever is higher |
SECTION 74:-
This section deals with determination of tax and its demand & subsequent recovery in situations resulting into by way of any fraud, wilful misstatement or suppression of facts:
>Taxes not paid;
>Taxes short paid;
>Tax erroneously refunded;”
> Input tax credit wrongly availed or utilised;
>Recovery of interest payable which is not paid or partly paid or interest erroneously refunded.
TIME LIMIT FOR ISSUE OF NOTICE, PENALTY AND ADJUDICATION UNDER SECTION 74
| Payment of Penalty | Amount of Penalty |
| Dues paid before issuance of show cause notice | 15% of tax amount due |
| Dues paid within 30 days of issuance of show cause notice | 25% of tax amount due |
| Dues paid after 30 days of issuance of Order | 50% of tax amount due |
| Any other case | 100% of tax amount due |
DEMAND AND RECOVERY FORMS PRESCRIBED UNDER GST
| GST DRC 01A | Communication of the details of tax, interest or penalty ascertained by the proper officer in Part A and response thereto by the assessee in Part B |
| GST DRC 01 | Summary of Show Cause Notice |
| GST DRC 02 | Summary of Statement |
| GST DRC 03 | Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement |
| GST DRC 04 | Acknowledgement of acceptance of payment made voluntarily |
| GST DRC 05 | Intimation of conclusion of proceedings |
| GST DRC 06 | Reply to the Show Cause Notice |
| GST DRC 07 | Summary of the order |
| GST DRC 08 | Summary of rectification or withdrawal of the Order |
| GST DRC 07A | Summary of Order issued under existing laws |
| GST DRC 08A | Summary of rectification, modification or quashing of Order issued under existing laws |
| GST DRC-09 | Order for recovery through specified officer under section 79 |
| GST DRC-10 | Notice for Auction of Goods under section 79 (1) (b) of the Act |
| GST DRC-11 | Notice to successful bidder |
| GST DRC-12 | Sale Certificate |
| GST DRC-13 | Notice to a third person under section 79(1)(c ) |
| GST DRC-14 | Certificate of Payment to a Third Person |
| GST DRC-15 | Application before the civil court requesting execution for a decree application before the civil court requesting execution for a decree |
| GST DRC-16 | Notice for attachment and sale of immovable/movable goods/shares under section 79 |
| GST DRC-17 | Notice for Auction of Immovable/Movable Property under section 79(1) (d) |
| GST DRC-18 | Certificate action under clause (e) of sub-section (1) section 79 |
| GST DRC-19 | Application to the Magistrate for Recovery as Fine |
| GST DRC-20 | Application for Deferred Payment/ Payment in Instalments |
| GST DRC-21 | Order for acceptance/rejection of application for deferred payment / payment in instalments |
| GST DRC-22 | Provisional attachment of property under section 83 |
| GST DRC-23 | Restoration of provisionally attached property/bank account under section 83 |
| GST DRC-24 | Intimation to Liquidator for recovery of amount |
| GST DRC-25 | Continuation of Recovery Proceedings |
Author Bio
officer can issue direct DRC-01 without issueing DRC-01A
pl reply.