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What happens in cases (both under Section 51A & B) where notice is issued but order has not been passed within 3 years (51A)/5 years (51B)?

Question 9 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. What happens in cases (both under Section 51A & B) where notice is issued but order has not been passed within 3 years (51A)/5 years (51B)? Ans. The Model GST Law provides for deemed conclusion of the adjudication proceedings if the order is not issued within three years as provided for in section 51A (7) or within five years as provided for in section 51B (7). –

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What happens if a person collects tax from another person but does not deposit the same with Government?

Question 10 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. What happens if a person collects tax from another person but does not deposit the same with Government? Ans. As per Section 52 of MGL, every person who has collected from any other person any amount as representing the tax under this Act, shall deposit the said amount to the credit of the Central or a State Government, regardless of whether the supplies in respec

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Can the person chargeable with tax pay the amount of demand along-with interest before issue of notice under section 51B?

Question 6 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 6 – Q 6. Can the person chargeable with tax pay the amount of demand along-with interest before issue of notice under section 51B? Ans. Yes. Before issue of notice under sub section (1) or a statement under sub-section (2), a person chargeable with tax, shall have an option to pay the amount of tax along with interest and fifteen percent penalty, ascertained either on his own

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If notice is issued under Section 51B and thereafter the noticee makes payment, is there any need to adjudicate the case?

Question 7 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. If notice is issued under Section 51B and thereafter the noticee makes payment, is there any need to adjudicate the case? Ans. No if tax/interest and penalty has been paid. Where the person to whom a notice has been under sub-section (1) issued, pays the tax along with interest with twenty five percent penalty within 30 days of issue of notice all proceedings in resp

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In case a notice is adjudicated under Section 51B and order issued confirming tax demand and penalty, does the noticee have any option to pay reduced penalty?

Question 8 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. In case a notice is adjudicated under Section 51B and order issued confirming tax demand and penalty, does the noticee have any option to pay reduced penalty? Ans. Yes. He needs to pay tax/interest and 50% of penalty within 30 days of communication of order. Where any person served with an order issued under sub-section (6) of Section 51B pays the tax along with inte

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If notice is issued under Section 51A and thereafter the noticee makes payment, is there any need to adjudicate the case?

Question 3 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q 3. If notice is issued under Section 51A and thereafter the noticee makes payment, is there any need to adjudicate the case? Ans. Where the person to whom a notice has been issued under sub-section (1) of section 51A, pays the tax along with interest within 30 days of issue of notice, no penalty shall be payable and all proceedings in respect of such notice shall be dee

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Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. Will this system continue in

Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. Will this system continue in GST? – Question 20 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. Presently under Central law, exporters are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of

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Which is the applicable section for the purpose of recovery of tax short paid or not paid or amount erroneously refunded or input tax credit wrongly availed or utilized?

Question 1 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. Which is the applicable section for the purpose of recovery of tax short paid or not paid or amount erroneously refunded or input tax credit wrongly availed or utilized? Ans. Section 51A in cases where there is no invocation of fraud/suppression/mis-statement etc and Section 51B where the ingredients of fraud/suppression/mis-statement etc are present. – Statutory Pro

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How will the person prove that the principle of unjust enrichment do not apply in his case?

Question 18 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. How will the person prove that the principle of unjust enrichment do not apply in his case? Ans. The person concerned may furnish together with the application such document(s) or evidence(s) to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid in relation to which such refund is claimed was not passed on by him to any other perso

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Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?

Question 19 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 19 – Q 19. Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST? Ans. No, there will be no such provision in GST. They will have to purchase goods upon payment of tax and claim refund of the accumulated ITC as discussed in section 38(2). – Statutory Provisions, Acts, Rules, Regulations, Taxa

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In case of refund under exports, whether BRC is necessary for granting refund?

Question 16 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 16 – Q 16. In case of refund under exports, whether BRC is necessary for granting refund? Ans. Since the exporter has a time period of one year from the date of export for remitting of export proceeds, BRC may not be available at the time of refund application. But if export proceeds are received in advance BRC may be available. Thus, refund should be subject to submission of BRC details

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Can refund be withheld by the department?

Question 11 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. Can refund be withheld by the department? Ans. Yes, refund can be withheld in the following circumstances: If the registered dealer has not submitted return(s), till he files the return(s); If the registered taxable person is required to pay any tax, interest or penalty which has not been stayed by the appellate authority/Tribunal/ court, till he pays such tax interest or pena

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Is there any time limit for sanctioning of refund?

Question 10 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. Is there any time limit for sanctioning of refund? Ans. Yes, it is 90 days in all cases, excepting in a case where the refund to the extent of 80% of the total amount claimed is refundable to certain categories of exporters referred to in sub-section (4A) of section 38. If refund is not sanctioned within the period of three months, interest will have to be paid by the departme

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