EXCISE & TAXATION DEPARTMENT, HARYANA
Vanijya Bhawan, Plot No. 1-3, Sector 5, Panchkula- 134109
Ph: 0172-2590990 Fax: 0172-2590935
www.haryanatax.gov.in
To,
All Joint Excise and Taxation Commissioners (Range) and
All Deputy Excise and Taxation Commissioners (GST)
Memo : 5915/GST dated: 17-11-2021
Subject_: Recovery of arrears of old- laws {HVAT Act 2003 GST Act 1956 or any other arrear) under the provision of GST Act 2017
The Haryana GST Act provides for recovery of arrears under the existing law (HVAT Act 2003, CST Act 1956 or any other arrear) as arrears under the HGST Act 2017.
2. Your attention is invited to legal provisions related to recovery of arrears under the HGST Act, 2017:-
Section 142(6)(b) every proceeding of appeal, revision, review or reference relating to recovery of CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of existing law and if any amount of credit becomes recoverable as a result of such appeal,revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.
(a) every proceeding of appeal, revision, review or reference relating to any output duty or tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of duty or tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.
(b) every proceeding of appeal, review or reference relating to any output duty or tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 118 of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.
(a) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the some shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act;
(b) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 1113 of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.
(9) (a) where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of CENVAT credit is found to be inadmissible, the same shall, unless recovered under the existing low, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act;
(b) where any return, furnished under the existing law, is revised after the appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision, any amount is found to be refundable or CENVAT credit is found to be admissible to any taxable person, the same shall be refunded to him in cash under the existing law, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act;
Further, Rule 142(A) of the HOST Rules, 2017 provides for the procedure to be followed for recovery of dues under the existing laws under the GST Act:
Procedure for recovery of dues under existing laws states that:-
(1) A summary of order issued under an;• of the exist rug laws creating demand of tax, interest, penalty, fee or any other dales which becomes recoverable consequent to proceedings launched under the existing law before, (1 or after the appointed day shall, unless recovered under that law, he recovered under the Act and may be uploaded in FORM GST DRC 07A electronically on the common portal, for recovery under the Act and the demand of the order shall be posted in Part II of Electronic Liability Register in FORM GST PMT 01.
(2) Where the demand of an order uploaded under sub-rule (1) is rectified or quashed in any proceedings, including in appeal, review Or revision, or the recovery is made under the existing laws, a summary thereof shall be uploaded on the common portal in FORM GST 08A and Part II of Electronic Liability Register FORM GST PMT 01 shall be updated accordingly.
Where regard to these provisions and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Proper Officer may issue Form GST DRC -07A and Form GST DRC-08A to add VAT/CST arrears in GST system and subsequently recover the arrears as GST arrears.
5. This exercise may be done in a phase wise manner and arrears with tax, interest, penalty, fee or others to be uploaded in the system. DETCs are requested to send a compliance report of the same by 31st December 2021.
6. Difficulty, if any, in implementation of the instructions above may be brought to the notice of the AETC (T) or AETC (GST) at the HO.
Additional Excise and Taxation Commissioner (GST)
For Excise and Taxation Commissioner
Haryana, Panchkula
