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TMI BlogRecovery of TaxX X X X Extracts X X X X X X X X Extracts X X X X ..... l not be able to file any return for further period. Effectually these provisions works as a Self-Policing system and takes care of any mis-match in the payment of taxes. However, despite these provisions there may arise some instances where the tax was not paid correctly. To deal with all such situations the provisions for Recovery are incorporated in any tax law. Accordingly, the GST Act contains elaborate provisions for recovery of tax under various situations, which can be broadly classified into following two categories: - i. Tax short paid or erroneously refunded or input tax credit wrongly availed; and ii. Non-payment of self-assessed tax or amount collected as representing the Tax. 2. The incidence of the short payment of tax or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All proceedings deemed to be concluded. 4. Tax amount, along with interest, paid after 30 days of communication of Order. 10% of the Tax amount or ₹ 10,000/-, whichever is higher 100% of the Tax amount. 3. As can be seen from the foregoing para that for all types of incidences of short payment or erroneous refund or wrong availment of Input Tax credit, there are incentive for the person who accepts his tax liability and readily discharge the same. The law provides an opportunity for payment of tax, interest and a Nil or nominal penalty (depending on nature of offence) before issuance of Notice and emphatically stipulates that in all such cases no Notice shall be issued and consequently there shall be no other consequences forany ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be started directly. Penalty, @ 10% of the Tax amount or ₹ 10,000/-, whichever is higher, shall also be payable if the period of non-payment exceeds 30 days from the due date of payment of tax. The GST Act also ensures timely disposal of cases by further providing that if the Order is not issued within the stipulated time limit of three years or five years, as the case may be, the adjudication proceedings shall be deemed to be concluded. From all these provisions it is clear that the non-payment of self-assessed tax or the amount collected as representing the tax has been treated differently than the other short payments and in case of these two the only opportunity for paying the same without incurring any penalty is if it is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter, is required to be paid within 3 months from the date of receipt of order and the tax payer should pay the same within this time limit. However, it may be mentioned that in certain cases, considering the interest of revenue, this period of 3 months may be reduced. ii. If the payable amount is not paid within the specified time limit of 3 months then recovery proceedings shall be initiated and various actions may be taken by the recovery officer, for realization of Government dues. These options for recovery of government dues includes deduction of money from any amount payable to such tax payer, by detaining and selling any goods, by directing any other person from whom the money is due to such person, attaching any moveable (Includi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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