TAX DEMANDED UNDER SEC 7(1) & SEC 9 OF CGST ACT

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..... TAX DEMANDED UNDER SEC 7(1) & SEC 9 OF CGST ACT
Query (Issue) Started By: - Vinod jadhav Dated:- 17-7-2024 Last Reply Date:- 21-7-2024 Goods and Services Tax - GST
Got 4 Replies
GST
After Audit the department issued SCN and demand tax under sec 7 (1) & sec 9 of CGST Act. one of the issue of SCN is as below. During the course of Audit, on P&L and Balance sheet and VAT returns, it is .....

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..... observed that there is a short declaration in the value of taxable turnover when compared VAT returns, GSTRs and P&L of Rs. 77,59,004/- during the financial year 2017-18 under Sec 7 (1) of CGST Act, 2017. Further Tax payer has not provided any clarification on non-payment of GST on the above turnover. Hence the same is liable to tax on which the taxpayer has to discharge tax liability @ 18% Rs 13, .....

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..... 96,621/-. In view of the above, the TP requested to pay an amount of Rs. 13,96,621/-.(CGST Rs. 698311/- SGST Rs. 698311/-) under Sec 7 (1) & Sec 9 of CGST Act, 2017 along with interest under Section 50 of CGST Act, 2017 and Penalty under Section 74 of CGST Act, 2017. My Question is : The SCN issued under Section 7 (1) (Scope of Supply) and Section 9 (Levy and Collection) is vague and lacks supp .....

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..... orting details, basis of liability, or nature of liability. Because the GST is ultimately levied under Section 7 (1) within the scope of supply. Reply By Shilpi Jain: The Reply: Agreed. Mere reco differences cannot lead to demand of tax. The department is bound to show what is the supply made against which the demand is being raised. Reply By Vinod jadhav: The Reply: Are there any case laws re .....

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..... garding sSCN issued only based on Sections 7 and 9 without providing the nature of service, classification, etc.? Reply By Shilpi Jain: The Reply: Many such cases exists in the previous tax regime. Service Tax to be more specific. The same principle can apply to GST as well , legislations being pari materia. Reply By KASTURI SETHI: The Reply: Case laws are available on this issue in your sup .....

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..... port.
Discussion Forum - Knowledge Sharing .....

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