In the GST regime Proper Officer is empowered to issue show cause notice to seek recovery of any tax not paid or short paid or erroneously refunded or input tax erongly availed or utilized
The Provisions Prescribed under GST Act for demand and recovery of tax are similar to existing Provisions under Customs, Excise and Service Tax. The provisions relating to conclusion of proceedings before preferring an appeal is detailed out as below:
|No.||Situation 1 (Cases not involving Fraud or wilful misstatement or suppression of facts)||Situation II( Cases not involving Fraud or wilful misstatement or suppression of facts)||Implication|
|1.||If tax and interest paid before issuanance of Show cause notice.||If tax , interest and 15% penalty paid before issuance of
Show cause notice
|No Show cause notice to be issued and
proceedings will be deemed to be concluded.
|2.||If tax and interest paid within 30 days of issuance of Show cause notice||If tax , interest and 25% penalty paid within 30 days of issuance of Show cause notice.||The proceedings will be deemed to be concluded.|
|3.||If tax, interest and 10% penalty or Rs. 10,000, whichever is higher,
paid within 30 days of communication of order adjudicating the Show cause notice
|If tax , interest and 50% penalty paid within 30 days of communi- cation of order adjudicating the Show cause notice||The proceedings will be deemed to be concluded|
|4.||If order is not issued within 3 years from the due date or the actual date for filing of annual return, whichever is earlier||If order is not issued within 5 Years from the due date or the actual date for filing of annual return, whichever is earlier||The proceedings will be deemed to be concluded|
” However the GST act does not specifies any time limit for issuance of show cause notice and it only specifies maximum time for limit for issuance of order and now the revenue authorities can issue notice and conclude the proceedings at any time before 3/5 years .Further interest on Tax Short Paid Or not paid is payable whether interest is specified in the order or not
The GST Act provides three set of provisions for appeals. viz CGST, SGST and common provisions applicable to CGST as well as SGST .However the discussion in this article is confined only to CGST
Any person aggrieved by an order or decision of adjudicating authority may prefer an appeal before the First Appellate Authority
The Commissioner also may suo motu examine the record of a case and direct any Designated officer to file an appeal before the First Appellate Authority for determination of points arising out of any order or decision
The appeal needs to be filed before the First Appellate Authority within 3 months from the date communication of order sought to be appealed against. The delay in filing appeal by 1 month can only be condone by the First Appellate Authority
Every appeal should be filed in prescribed form and duly verified in prescribed manner. The appeal should be accompanied by a . mandatory pre-deposit of 10 per cent of the amount in dispute. Amount in dispute shall include tax, interest, fine, fee and penalty.
The First Appellate Authority shall hear and decide appeal within one years of filing , wherever possible . The order need to be issued in writing and must state all points of determination along with reasons for such decision. The First Appellate Authority can grant adjournment of hearing a case up to 3 times to any party.
The Central Government shall constitute a National Goods and Service Tax Appellate Tribunal (‘National Appellate Tribunal ‘) headed by a national president Any person aggrieved by decision of first Appellate Authority may prefer an appeal before Appellate Tribunal. Discretionary power has been given to Tribunal to admit an appeal wherein the amount under dispute does not exceed Rs. 1 Lakh including amount of fine , fee or penalty. An Appeal before the tribunal needs to be filed within 3 months from the date of communication of the order sought to be appealed against. No time limit for tribunal to accept condo nation of delay application if it is satisfied that there was sufficient reason for not filing the appeal within time .
In case of appealed to be filed by the department Duly constituted Committee by CBEC will be responsible for taking decisions with respect to filling of appeals against orders passed by first Appellate Authority. The party against whom appeal is preferred may file cross objection within 45 days of the receipt of notice .
The National Appellate tribunal will have one branch viz State GST Tribunal (‘ State Appellate Tribunal’ for each state headed by state president.This is the area where cost accountants can exercise their interpretational skill of GST law as the success of any Tax professional to a large extend depends upon his /her ability to handle litigations, the existence of which is inevitable for any Tax law .
We would like to thank CMA Harshad Deshpande, who is also the Chief Editor of WIRC Bulletin, ICAI, for his effort to make the content on GST available to larger section of people and for dissemination of knowledge on the topic , which is of prime importance not only for the taxpayers but also for common man of the Country.
Article been published with permission from CMA Harshad Deshpande given on behalf of Western India Regional Council of India of The Institute of Cost Accountants of India.