Introduction: The Central Board of Indirect Taxes and Customs GST Policy Wing, in its communication F.No.20016/41/2023-CBIC, dated 23rd November 2023, emphasizes the importance of adhering to electronic portal obligations under the CGST Act. The directive specifically addresses the serving of notices in FORM GST DRC-01 and the uploading of orders in FORM GST DRC-07. This article delves into the key provisions, challenges faced by field formations, and the critical role of compliance in maintaining seamless record-keeping under GST.
Detailed Analysis:
1. Legal Framework: The communication draws attention to sections 52, 73, 74, 122, 123, 124, 125, 127, 129, and 130 of the CGST Act, mandating the issuance of notices by proper officers for tax recovery, interest, penalties, etc. Rule 142(1) of the CGST Rules further emphasizes the electronic service of summaries of these notices through FORM GST DRC-01.
2. Order Upload Requirement: Sub-rule (5) of rule 142 extends the electronic portal obligation to orders issued under various sections of the CGST Act. FORM GST DRC-07 is specified for uploading summaries of such orders, including details of tax, interest, and penalties payable by the concerned person.
3. Non-Compliance Issues: The communication notes instances where field formations manually serve notices and orders without electronically uploading summaries on the portal. This non-compliance is highlighted as a clear violation of CGST Rules, impacting record-keeping and subsequent proceedings.
4. Importance of Electronic Records: Electronic service and upload of summaries not only make notices and orders accessible to taxpayers but also facilitate efficient tracking of proceedings. The article underscores the necessity of this electronic trail for seamless appeal and recovery processes on the portal.
Conclusion: The directive concludes by directing proper officers to ensure compliance with the electronic portal obligations specified in CGST Rules. Principal Chief Commissioners/Chief Commissioners are urged to supervise officers closely, ensuring strict adherence to these provisions within their jurisdictions. The article emphasizes the potential consequences of non-compliance, urging stakeholders to address any difficulties in implementation by reaching out to the Board.
This detailed article aims to provide a comprehensive understanding of the communication from the Central Board of Indirect Taxes and Customs GST Policy Wing, shedding light on the legal framework, challenges, and the critical need for compliance with electronic portal obligations under the CGST Act.
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F.No.20016/41/2023-CBIC
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs GST Policy Wing
New Delhi
Dated: 23rd November 2023
To,
All the Principal Chief Commissioners Chief Commissioners / Principal Commissioners /Commissioners of Central Tax
All the Principal Directors General/ Directors General of Central Tax
Madam/Sir,
Subject: Serving of the summary of notice in FORM GST DRC-01 and uploading of summary of order in FORM GST DRC-07 electronically on the portal by the proper officer-regarding.
Reference is invited to the provisions of section 52, section 73, section 74, section 122, section 123, section 124, section 125, section 127, section 129 and section 130 of Central Goods and Service Tax Act, 2017 (herein after referred to as the CGST Act), as per which a notice is required to be issued by the proper officer to a person for demand and recovery of any amount of tax not paid or short paid/ amount of input tax credit wrongly availed/ amount of refund erroneously made, for recovery of interest and/ or for imposition of any penalty or fine on the said person. Attention is also invited to sub-rule (1) of rule 142 ofCentral Goods and Service Tax Rules, 2017 (herein after referred to as the CGST Rules) as per which, along with the notices issued under section 52 or section 73 or section 74 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act, a summary of such notice is also required to be served by the proper officer electronically on the portal in FORM GST DRC-01.
2. It is also mentioned that as per sub-rule (5) of rule 142 of CGST Rules, where any order is issued by the proper officer under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act, summary of such order is also required to be uploaded electronically on the portal by the proper officer in FORM GST DRC-07, specifying the amount of tax, interest and penalty, as the case may be, payable by the person concerned.
3. It has been brought to the notice of the Board that some of the field formations are serving such notices and orders manually only and are not serving the summary of the notices issued under section 52 or section 73 or section 74 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act, electronically on the portal in FORM GST DRC-01, or are not uploading the summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act electronically on the portal in FORM GST DRC-07.
4. It is highlighted that non-issuance of the summary of such notices/ orders electronically on the portal is in clear violation of the explicit provisions of CGST Rules. Besides, serving/ uploading the summary of notices/ orders electronically on the portal not only makes the said notices/ orders available electronically to the taxpayers on the portal, but also helps in keeping a track of such proceedings and consequential action in respect of recovery, appeal etc, subsequent to issuance of such notices/ Accordingly, any deviation from this requirement under CGST Rules may adversely impact record keeping under GST. Further, such an action may also impact further proceedings of appeal and/ or recovery to be done seamlessly on the portal.
5. The proper officers are accordingly directed to ensure that summary of the notices issued under section 52 or section 73 or section 74 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act are served, electronically on the portal in FORM GST DRC-01. Also, they should ensure that summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 of CGST Act is uploaded electronically on the portal in FORM GST DRC-07.
6. The Principal Chief Commissioners/ Chief Commissioners of the CGST Zones and Principal Director General of DGGI may closely supervise the officers under their Zones/ Directorate to ensure strict compliance of the above provisions of rule 142 of CGST Rules by the officers within their Zones/
7. Difficulties, if any, in implementation of these instructions may be brought to the notice of the Board (gst-cbec@gov.in).
(Sanjay Mangal)
Principal Commissioner (GST)
Copy to:
1. The Joint Secretary, GST Council Secretariat, New Delhi for circulating the same to all States/ UTs for information and necessary action at their
