Author: admin_gst

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?
Question 5
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
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

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Will unutilized ITC at the end of the financial year (after introduction of GST) be refunded?
Question 4
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. Will unutilized ITC at the end of the financial year (after introduction of GST) be refunded?
Ans. There is no such provision to allow refund of such unutilized ITC at the end of the financial year in the GST Law. It shall be carried forward to the next financial year.
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Can unutilized ITC be given refund, in case goods Exported outside India are subjected to export duty?
Question 3
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. Can unutilized ITC be given refund, in case goods Exported outside India are subjected to export duty?
Ans. Refund of unutilized input tax credit is not allowed in cases where the goods exported out of India are subjected to export duty – as per the second proviso to Section 54(3) of CGST/SGST Act.
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Can unutilized Input tax credit be allowed as refund?
Question 2
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. Can unutilized Input tax credit be allowed as refund?
Ans. Unutilized input tax credit can be allowed as refund in accordance with the provisions of sub-section (3) of section 54 in the following situations: –
(i) Zero rated supplies made without payment of tax;
(ii) Where credit has accumulated on account of rate of tax on inputs being higher than the

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What is refund?
Question 1
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
14. Refunds
Q 1. What is refund?
Ans. Refund has been discussed in section 54 of the CGST/SGST Act.
“Refund” includes
(a) any balance amount in the electronic cash ledger so claimed in the returns,
(b) any unutilized input tax credit in respect of (i) zero rated supplies made without payment of tax or, (ii) where the credit has accumulated on account of rate of tax on inputs being higher th

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What action the tax authorities may take after the special audit?
Question 24
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 24. What action the tax authorities

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Who will bear the cost of special audit?
Question 23
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 23. Who will bear the cost of special audit?
Ans. The expe

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What is the time limit to submit the audit report?
Question 22
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. What is the time limit to submit the audit rep

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Who will do the special audit?
Question 21
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 21. Who will do the special audit?
Ans. A Chartered Accountant or a

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Who can serve the notice of communication for special audit?
Question 20
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. Who can serve the notice of communic

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Under what circumstances can a special audit be instituted?
Question 19
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. Under what circumstances can a special audit be instituted?
Ans. A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 66 of CGST /SGST Act.
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What would be the action by the proper officer upon conclusion of the audit?
Question 18
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. What would be the action by the proper officer upon conclusion of the audit?
Ans. The proper officer shall, on conclusion of audit, within 30 days inform the taxable person about his findings, reasons for findings and the taxable person's rights and obligations in respect of such findings.
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What are the obligations of the taxable person when he receives the notice of audit?
Question 17
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. 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 au

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What is meant by commencement of audit?
Question 16
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. 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

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What is the period within which the audit is to be completed?
Question 15
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. What is the period within which the audit is to be completed?
Ans. The audit is required to be completed within 3 months from the date of commencement of audit. The period is extendable for a further period of a maximum of 6 months by the Commissioner.
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Whether any prior intimation is required before conducting the audit?
Question 14
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. Whether any prior intimatio

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Who can conduct audit of taxpayers?
Question 13
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. Who can conduct audit of taxpayers?
Ans. There are three types of audit prescribed in the GST Act(s) as explained below:
(a) Audit by Chartered Accountant or a Cost Accountant: Every registered person whose turnover exceeds the prescribed limit, shall get his accounts audited by a chartered accountant or a cost accountant. (Section 35(5) of the CGST/SGST A

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Is summary assessment order to be necessarily passed against the taxable person?
Question 12
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. 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 per son in respect of such good s cannot be ascertained, the person in charge of such goods shall be deemed to be the t

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Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Question 11
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. 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 Commissione

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Under what circumstances can a tax officer initiate Summary Assessment?
Question 10
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. Under what circumstances can a tax officer initiate Summary Assessment?
Ans. As per section 64 of CGST/SGST Act, 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 off

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What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Question 9
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. 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 63 of CGST/SGST Act provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment

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What is the time limit for passing assessment order u/s 62 (Best Judgment) and 63 (Non-filers)?
Question 8
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. What is the time limit for passing assessment order u/s 62 (Best Judgment) and 63 (Non-filers)?
Ans. The time limit for passing an assessment order under section 62 or 63 is five years from the due date for furnishing the annual return.
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Statute, statutory provisions legislation, law, enactmen

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Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
Question 7
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
Ans. The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period

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If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?
Question 6
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?
Ans. The proper officer has to first issu

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What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed, while conducting scrutiny under section 61 of CGST ACT?
Question 5
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed, while conducting scrutiny under section 61 of CGST ACT?
Ans. If the t

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