TMI BlogRecovery of TaxX X X X Extracts X X X X X X X X Extracts X X X X ..... er will 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 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25% of the Tax amount. All proceedings deemed to be concluded. 3. Tax amount, along with interest, paid within 30 days of communication of Order. 10% of the Tax amount or ₹ 10,000/-, whichever is higher 50% of the Tax amount. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Fraud Cases Within 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund. Within 5 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund. 3. Any amount collected as tax but not paid No time limit. Within one year from the date of issue of notice. 4. Non-payment of self-assessed tax No need to issue a show cause notice. Recovery proceedings can be started directly. Penalty, @ 10% of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 10 Lakhs ii. High Courts- ₹ 20 Lakhs and iii. Supreme Court- ₹ 25 Lakhs 5. The recovery proceedings are final step towards realization of any tax or amount, which has been confirmed as payable after following the due process of adjudication by the proper officer. Therefore, if the tax dues and other amounts remain unpaid, despite all these beneficial provisions, and the tax payer fails to pay the dues after the orders are passed and statutory limit of 3 months is over then the proper officer may initiate recovery proceedings. These recovery provisions under the CGST Act, 2017 lays down a well-defined procedure which is as follows:- i. Any amount payable, in pursuance to any order passed in this matter, is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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