TMI BlogIssue regarding discharge of gross tax liability while filing gst returnsX X X X Extracts X X X X X X X X Extracts X X X X ..... It is requested to guide regarding any circular, notification or any other direction by Government of India which states that 5% of the gross tax liability to be compulsorily paid from cash ledger while filing gst returns. - Reply By Padmanathan Kollengode - The Reply = Is it Rule 86B of the CGST Rules which restricts utilization of electronic credit ledger? - Reply By Sanjeev Agrawal - The Reply = No sir it is not Rule 86B. - Reply By Padmanathan Kollengode - The Reply = May I know in what context the query is raised? is it because of any point in ASMT-10 or like notices? - Reply By VIPUL JHAVERI - The Reply = This may be useful Notification No. Date of Issue: 94/2020-Central Tax dated 22.12.2020 https://gstcouncil.gov.in/942020-central-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x-dated-22122020 - Reply By Sanjeev Agrawal - The Reply = Thank you Mr Vipul Jhaveri Sir but still my problem is about 5 % of the gross tax liability. The notification you sent is for Rule 86B . - Reply By Sanjeev Agrawal - The Reply = Dear Mr Padmanathan the query has been regarding a penlty order u/s 74 . It is raised by an Additional Commissioner. As per the order the assessee has discharged his liability all through ITC and a little bit from cash ledger. Now the Additional Commisoner wants to know about whether the 5% rule of paying liability through cash ledger applies to our case or not i.e. regarding its date of applicability (from and to) - Reply By VIPUL JHAVERI - The Reply = 5 % cash payments getting found for ecom https://www.tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... managementindia.com/visitor/detail_article.asp?ArticleID=10592 article by shri bimal jalan ji - Reply By Sanjeev Agrawal - The Reply = Sorry mr jhaveri but that also does not answer my query as my assessee is not an ecommerce operator thank you - Reply By Sadanand Bulbule - The Reply = Dear querist Please refer Rule 36[4] of the CGST Rules, 2017 as amended for the relevant year governing the claim of ITC. - Reply By Padmanathan Kollengode - The Reply = In Kerala also, ASMT-10 notices were sent stating that assessee has paid cash less than 5% of the liability. Now, there is a State Commissioner Circular directing to drop the proceedings in this issue. Accordingly, this doesn't form part of Section 73 / 74 SCN anymore. I can share the lin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k of the Circular, if that would help. Anyhow, there is no legal backing to this 5% cash requirement. It is only a 'reg flag' for the Dept. to look into possible sales suppression. Ideally, in such cases the Department should conduct an audit/ verification of books and stock registers to establish the actual suppression. They cannot directly ask the assessee to pay 5% in cash along with interest or penalty. - Reply By Padmanathan Kollengode - The Reply = Circular No 7/2021 in File No.CT/7533/2021-C1 dated 7-11-2021 II. Among the risk parameters flagged, the following parameters have been identified as defect that cannot be determined without detailed enquiry or investigation. ASMT-13 - Return within 30 days ITC utilisation greater t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han 5 times cash Turnover above 1crore cash nil Turnover above 60 percent In the above parameters the following instructions shall be followed. 1. If discrepancy notice in Form GST ASMT-10 is not issued yet, then Archive such cases, provided no other parameters involved other than those specified above. 2. If discrepancy notice in Form GST ASMT-10 was issued and pending for further proceedings then contact the noticee and request him to furnish a reply in Form GST ASMT-11 through the common portal. If there is any technical issue to file reply through common portal, then request the tax payer to file the same through the registered e-mail id. On receipt of such reply, issue order of acceptance in Form GST ASMT-12 stating that the discrepanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y intimated requires detailed enquiry or investigation. Before the issuance of order of acceptance ensure that no other parameters were involved in the notice in Form GST ASMT-10 other than those specified above. 3. After the discrepancy notice in Form GST ASMT-10 , if an intimation in Part A of Form GST DRC-01 A u/s. 73(5) or 74(5) of the Kerala State Goods and Services Tax Act, 2017 , as the case may be issued and pending for further proceedings, then contact the noticee and request him to furnish a reply in Part B of Form GST DRC-01 A through the registered e-mail Id. On receipt of such reply record the case as the defect mentioned in the intimation requires detailed enquiry or investigation. Before recording the case ensure that no othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r parameters were involved in the intimation in Part A of Form GST DRC-01A other than those specified above. 4. If Show Cause Notice u/s. 73(1) or 74(1) of the Kerala State Goods and Services Tax Act, 2017 , as the case may be was issued along with Summary of Show Cause Notice in Form GST DRC-01 , then after considering the representation in Form GST DRC-06 , and if the demand amount is not quantified in the SCN, (which should be the case as the parameters above alone do not enable quantification of a demand), a nil demand order may be issued along with the Summary of the order in Form GST DRC-07 stating that the subject matter mentioned in the SCN requires detailed enquiry or investigation. Before the issue of such orders, ensure that no o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther parameters were involved in the SCN other than those specified above - Reply By Padmanathan Kollengode - The Reply = Apologies, it was 5 times in Kerala, not 5%. Anyhow both doesn't have any legal backing. - Reply By Sanjeev Agrawal - The Reply = Thank you Mr Padmanathan. - Reply By Shilpi Jain - The Reply = 5% tax liability needs to be paid through cash ledger in case of residential units and commercial units in RREP. ITC cannot be used to pay this liability. Pls have a look at the services rate notificaiton. - Reply By Sanjeev Agrawal - The Reply = Thank you Ms Shilpi but my query was for a trader who deals in elctronics items. - Issue regarding discharge of gross tax liability while filing gst returns - Query Started By: - San ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jeev Agrawal Dated:- 1-4-2024 Last Replied Date:- 6-4-2024 Goods and Services Tax - GST - Got 15 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
