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Question 5 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Suppose a taxable person has paid IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa? Ans. No. He will have to pay the appropriate tax and claim refund of the tax wrongly paid. (IGST Sec.30 and Sec.53 GST). – Statutory Provisions, Acts, Rules, Regul

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Question 6 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 6 – Q 6. Whether purchases made by Embassies or UN be taxed or exempted? Ans. It will be taxed, which later on can be claimed as refund by them. [The United Nations Organization and Consulates or Embassies are required to take a Unique Identity Number and purchases made by them will be reflected against their number in the return of outward supplies of the supplier and refunds of taxes ca

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Can unutilized ITC be given refund, in case goods exported outside India are subjected to export duty? – Question 3 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GS

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Can ITC of goods lying in stock at the end of the financial year (after introduction of GST) be refunded? – Question 4 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model

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Question 1 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is refund? Ans. Refund has been discussed in section 38 of the MGL. Refund includes refund of tax on goods and/or services exported out of India or on inputs or input services used in the goods and/or services which are exported out of India, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit as provided under section

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Question 2 – Draft-Bills-Reports – Refunds – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. Can unutilized Input tax credit be allowed as refund? Ans. Yes, but only in following cases as given in sub-section (2) of section 38:- (i) Exports of goods on which export duty is not payable; (ii) Exports of services; (iii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on Outputs. – Statutory Provisions, Acts, Rules, Regula

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What action the tax authorities may take after the special audit? – Question 27 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 27 – Q 27.

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What is the time limit to submit the audit report? – Question 25 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 25 – Q 25. What is the ti

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Who will bear the cost of special audit? – Question 26 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 26 – Q 26. Who will bear the cost o

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Who can serve the notice for special audit? – Question 23 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 23 – Q 23. Who can serve the not

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Who will do the special audit? – Question 24 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 24 – Q 24. Who will do the special audit? Ans

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Question 20 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. What are the obligations of the taxable person when he receives the notice of audit? Ans. The taxable person is required to: a) facilitate the verification of accounts/records available or requisitioned by the authorities, b) provide such information as the authorities may require for the conduct of the audit, and c) render assistance for timely completion of the

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Question 21 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 21 – Q 21. What would be the action by the proper officer upon conclusion of

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Question 22 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 22 – Q 22. Under what circumstances can a special audit be instituted? Ans. A

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Question 18 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. What is the period within which the audit is to be completed? Ans.

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Question 19 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 19 – Q 19. What is meant by commencement of audit? Ans. The term commencement of audit is important because audit has to be completed within a given time frame in reference to this date of commencement. Commencement of audit means the later of the following: a) the date on which the records/accounts called for by the audit authorities are made available to them, or b) the ac

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Who can conduct audit of taxpayers? – Question 16 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 16 – Q 16. Who can conduct audit of taxp

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Whether any prior intimation is required before conducting the audit? – Question 17 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 17 – Q

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Question 14 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order? Ans. A taxable person against whom a summary assessment order has been passed can apply for its withdrawal to the jurisdictional Additional/Joint Commissioner within thirty days of the date of receipt of the order. If the said officer finds the or

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Question 15 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 15 – Q 15. Is summary assessment order to be necessarily passed against the taxable person? Ans. No. In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (section 48 o

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Question 12 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration? Ans. Section 47 of MGL provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from

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Question 13 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. Under what circumstances can a tax officer initiate Summary Assessment? Ans. As per section 48 of MGL, Summary Assessments can be initiated to protect the interest of revenue when: (a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and (b) the proper officer believes that delay in passing an assessment orde

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Question 10 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn? Ans. The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty day

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What is the time limit for passing order u/s 46 and 47? – Question 11 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. What is t

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Question 7 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL? Ans. If the taxable person does not provide a satisfactory explanation within 30 days of being informed (extendable by the officer concerned) or does not take corrective action within a reasonable period after

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