Author: admin_gst

If a person liable to pay tax has certain tax liability and in the meantime he transfers his business to another person, what happens to the existing tax liability?
Question 16
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. If a person liable to pay tax has certain tax liability and in the meantime he transfers his business to another person, what happens to the existing tax liability?
Ans. Where any person liable to pay tax, transfers his b

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What happens in cases where the tax demand confirmed is enhanced in appeal/revision proceedings?
Question 15
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. What happens in cases where the tax demand confirmed is enhanced in appeal/revision proceedings?
Ans. The notice of demand is required to be served only in respect of the enhanced dues. In so far as the amount already confirmed prior to disposal of appeal/revision, the recovery proceeding

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Can the proper officer allow payment of tax dues in installments?
Question 14
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Can the proper officer allow payment of tax dues in installments?
Ans. Yes, in cases other than self-assessed tax. The Commissioner/Chief Commissioner may extend the time for payment or allow payment of any amount due under the Act, other than the amount due as per the liability self-assessed in any return, by such per

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What are the modes of recovery of tax available to the proper officer?
Question 13
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What are the modes of recovery of tax available to the proper officer?
Ans. The following options are available to the proper officer:
a) The proper officer may deduct or may require any other specified officer to deduct the amount so payable from any money owing to such person;
b) The proper officer may recover or may require any other specified officer to recover the amount so payable by detaining and selling any goods belonging to such person;
c) The proper officer may, by a notice in writing, require any other person from whom money is due or may be

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Is there any time limit to issue notice in cases under Section 52- tax collected but not paid?
Question 12
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. Is there any time limit to issue notice in cases under Section 52- tax collected but not paid?
Ans. No. There is no time limit. Notice can be issued on detection of such cases without any time limit. Once notice is issued, the order has to be passed within 1 year from the date of issue of n

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In case the person does not deposit tax collected in contravention of Section 52, what is the proper course of action to be taken?
Question 11
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. In case the person does not deposit tax collected in contravention of Section 52, what is the proper course of action to be taken?
Ans. Notice to be issued. Principles of natural justice to be followed and order to be issued. It is to be noted that such o

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What happens if a person collects tax from another person but does not deposit the same with Government?
Question 10
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 cred

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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
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 is

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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
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 da

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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
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 w

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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
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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Is there any time limit to issue SCN or adjudicate the case u/s 51A/B?
Question 5
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Is there any time limit to issue SCN or adjudicate the case u/s 51A/B?
Ans. There is no time limit to issue SCN. However the issuance of SCN and adjudication of the case has to be completed within the period of 3 years (for Section 51A cases) and 5 years (for Section 51B cases) from the relevant date.
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Statute

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What is the relevant date for issue of Show Cause Notice under Section 51A/B?
Question 4
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What is the relevant date for issue of Show Cause Notice under Section 51A/B?
Ans. The relevant date is the date of filing of annual return where such returns of actually filed or where such returns are not filed, the due date for filing of annual return.
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Statute, statutory provisions legislation, law,

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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
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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Can the person chargeable with tax pay the amount of demand along-with interest before issue of notice under section 51A?
Question 2
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Can the person chargeable with tax pay the amount of demand along-with interest before issue of notice under section 51A?
Ans. Yes. In such cases no notice can be issued by the proper officer.
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Statute, statutory provisions legislation, law, enactment, Acts, R

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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
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 invo

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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 GST?
Question 20
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. 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

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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
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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How will the person prove that the principle of unjust enrichment do not apply in his case?
Question 18
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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Will the principle of unjust enrichment apply to exports or deemed exports?
Question 17
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. Will the principle of unjust enrichment apply to exports or deemed exports?
Ans. The principle of unjust enrichment is not applicable in case of actual exports of goods or services as the recipient is located outside the taxable territory. However, in case of deemed exports it will be applicable.
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Statute, statutory

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In case of refund under exports, whether BRC is necessary for granting refund?
Question 16
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
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.

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Whether refund can be paid before verification of documents?
Question 15
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Whether refund can be paid before verification of documents?
Ans. For export refunds to notified category of dealers, 80% refund can be granted before verification subject to such conditions and restrictions as may be prescribed – section 38(4A).
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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations,

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How will the refunds arising out of earlier law be paid?
Question 14
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. How will the refunds arising out of earlier law be paid?
Ans. The refund arising out of earlier law will be paid as per the earlier law and will be paid in cash (under CGST) or as per the provisions of the earlier law (under SGST) and will not be available as ITC (Section 156, 157 and 158 of MGL).
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Statute, statutory provisions legisl

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Is there any minimum threshold for refund?
Question 13
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. Is there any minimum threshold for refund?
Ans. No refu

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Where the refund is withheld under 38(9), as discussed in 11(c) above, will the taxable person be given interest?
Question 12
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. Where the refund is withheld under 38(9), as discussed in 11(c) above, will the taxable person be given interest?
Ans. If as a result of appeal or further proceeding the taxable person becomes entitled to refund then he shall be also entitled to interest.
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Statute, statutory pro

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