Home List Manuals GSTGST Ready ReckonerGST - Demand and Recovery This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Demand in case other than fraud or any wilful-misstatement or suppression of facts [Section 73] - GST Ready Reckoner - GSTExtract Demand in case other than fraud or any wilful-misstatement or suppression of facts Issue of show cause notice Section 73(1) of CGST Act : Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit Time limit for issuance of SCN [ Section 73(2), (10)] Time limit for issuing SCN:- The proper officer shall issue the notice under section 73(1) at least three months prior to serving order. [section 73(2)] Time limit for issuance of Adjudication order :- As per section 73(10) time limit is within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund. Extension of time limit specified u/s 73(10) for issuance of order u/s 73(9):- 1. Notification No. 09 / 2023 Central tax notifies for the Extension of time limit for recovery of tax in in case other than fraud or any wilful-misstatement or suppression of facts namely: for the financial year 2017-18, up to the 31st day of December, 2023 ; for the financial year 2018-19, up to the 31st day of March, 2024 ; up to the 30th day of April, 2024 amended by Notification No. 56/2023- Central Tax Dated 28/12/2023. for the financial year 2019-20, up to the 30th day of June, 2024 up to the 31st day of August, 2024 amended by Notification No. 56/2023- Central Tax Dated 28/12/2023. No need to serve the SCN [Section 73(3) (4)] Already issued SCN for any other period:- Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax. The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice. Statement by Proper officer to serve as Deemed Notice [ Section 73(3) ] Where a notice has been issued for any period under section 73(1), the proper officer may serve a statement, containing the details of - tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods on the person chargeable with tax. Section 73(4) The service of such statement shall be deemed to be service of notice on such person chargeable with tax, on the same grounds as stated in earlier notice.(ie as show cause notice). Payment of tax before issue of SCN [Section 73(5), (6), (7)] [Voluntary Payment] Interest on tax always paid whether specified or not in demand order As Per section 73(5) In case of payment of amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. No Notice in case of payment of amount due Section 74(6 ) states that the proper officer, on receipt of such information, shall not serve any notice in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. Consequences leading to notice in case of short payment Howsoever as Per Section 73(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. No Penalty In case of due payment within 30 days of show cause notice Section 73(8) Where any person chargeable with tax pays the said tax along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. Adjudication order [Section 73(9) (11)] Mandatory to pay Penalty in following case [ Section 73(11) ] Notwithstanding anything contained in section 73(6) (8) and; provides for the penalty under section 73(9) shall be payable; where any amount of self-assessed tax or any amount collected as tax has not been paid ; within a period of thirty days from the due date of payment of such tax. Determination of penalty Section 73(9) The proper officer shall issue a order and impose the penalty equivalent to, a) 10% of tax or b) ₹ 10,000/- Whichever is higher Procedure for issue of Notice and order for demand of amounts payable under the Act . Issuance of Notice or statement As per rule 142(1) The proper officer shall serve, along with the (a) Notice issued in FORM GST DRC-01 , in following cases :- under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically The proper officer may, before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A (b) Statement issued in FORM GST DRC-02 , under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically specifying therein the details of the amount payable. Where, before the service of notice or statement the person chargeable with tax makes payment of the tax and interest or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A), he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement , accepting the payment made by the said person in FORM GST DRC 04 . Partial payment of demand :- Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A (3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the service of a notice under sub-rule (1), or where the person concerned makes payment of the amount referred to in sub-section (1) of section 129 within seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice. (4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 or the reply to any notice i ssued under any section whose summary has been uploaded electronically in FORM GST DRC-01 under sub-rule (1) shall be furnished in FORM GST DRC-06 . (5) A 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 shall be uploaded electronically in FORM GST DRC-07 , specifying therein the amount of tax, interest and penalty, as the case may be, payable by the person concerned (6) The order referred to in sub-rule (5) shall be treated as the notice for recovery. (7) Where a rectification of the order has been passed in accordance with the provisions of section 161 or where an order uploaded on the system has been withdrawn, a summary of the rectification order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST DRC-08 .
|