Introduction: In a recent development, the Ministry of Finance has issued Notification No. 56/2023-Central Tax dated 28th December 2023, bringing forth significant changes to the time limits for the issuance of notices in the context of Goods and Services Tax (GST). This update, impacting the financial years 2018-19 and 2019-20, aims to streamline the process and provide additional time for both the GST department and taxpayers to handle compliance matters effectively.
Extended Deadlines:
The amended deadlines set by the notification are as follows:
A. For Financial Year 2018-19:
- Show cause notices can now be issued until 31st January 2024, extending the original deadline by one month.
- Orders related to the recovery of tax not paid, short paid, or input tax credit wrongly availed or utilized can be issued until 30th April 2024, also extended by one month.
B. For Financial Year 2019-20:
- Show cause notices can be issued until 31st May 2024, providing a two-month extension.
- Orders for the same financial year can be issued until 31st August 2024, extending the original deadline by two months.
Implications and Considerations:
The implications of Notification 56/2023-Central Tax include:
A. Time-Barring Periods under Section 73:
- The extended deadlines mentioned above apply specifically to time-barring periods under Section 73.
- The GST department will still have an additional two years to issue notices and orders under suppression/misrepresentation cases under Section 74.
B. Consideration for Taxpayers:
- For cases related to the financial year 2018-19 at the ASMT-10/DRC-01A stage, taxpayers are advised to be aware of the extended timeline.
- The department should allow a sufficient reply period of 15-30 days for these notices to ensure that taxpayers have a reasonable opportunity to be heard, as emphasized in the precedent set by the case of Raymond Limited Vs Union of India (Madhya Pradesh High Court), Writ Petition No. 26693 of 2022, Date of Judgement: 20/11/2023
Conclusion: The extension of time limits for the issuance of GST notices and orders provides a more realistic timeframe for both the GST department and taxpayers to address compliance matters effectively. It is crucial for taxpayers to be aware of these extended deadlines and take advantage of the additional time provided to ensure a fair and just resolution of their cases. The balance between timely enforcement and allowing taxpayers a reasonable opportunity to be heard is essential for the smooth functioning of the GST system.
Ministry Of Finance
(Department Of Revenue)
(Central Board Of Indirect Taxes And Customs)
New Delhi
Notification No. 56/2023-Central Tax Dated: 28th December, 2023
S.O. 5483(E).—In exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union territory Goods and Services Tax Act, 2017 (14 of 2017) and in partial modification of the notifications of the Government of India, Ministry of Finance (Department of Revenue), No. 35/2020-Central Tax, dated the 3rd April, 2020 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 235(E), dated the 3rd April, 2020 and No. 14/2021-Central Tax, dated the 1st May, 2021 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 310(E), dated the 1st May, 2021 and No. 13/2022-Central Tax, dated the 5th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 516(E), dated the 5th July, 2022, and No. 09/2023-Central Tax, dated the 31st March, 2023 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number G.S.R. 1564(E) dated the 31st March, 2023, the Government, on the recommendations of the Council, hereby, extends the time limit specified under sub- section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, relating to the period as specified below, namely:–
(i) for the financial year 2018-19, up to the 30th day of April, 2024;
(ii) for the financial year 2019-20, up to the 31st day of August, 2024.
[F. No. CBIC-20013/7/2021-GST]
RAGHAVENDRA PAL SINGH, Director
Strange to see spin of benefit to the taxpayer because of this Notification