Goods and Services Tax

VAT credit was not available on items X & Y as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now? – Question 3 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q 3. VAT credit was not available on items 'X' & 'Y' as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now? Ans. He shall be enti

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A registered taxable person say, purchases capital goods in the last quarter of 2016-17. Though the invoice is received within 31st March but the capital goods are received on 5th April, 2017 (i.e. in GST regime). Will such a person get full credit of CENVAT in 2017-18? – Question 2 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. A registered taxable person say, purchases capital goods in the last quarter of 2016-17. Thoug

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Question 1 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. Will the CENVAT/ITC carried forward in the last return prior to GS

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Question 4 – Draft-Bills-Reports – Appeals, Review and Revision in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. Whether this time limit applies even for the departmental appeal/application filed consequent to order of Commissioner of CGST? Ans. Yes. It applies even for such applications filed which are to be treated as appeal and all the provisions of appeal are made applicable for such application as well. – Statutory Provisions, Acts, Rules, Regulations, Taxat

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What is the time limit to file appeal to First Appellate Authority? – Question 3 – Draft-Bills-Reports – Appeals, Review and Revision in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Que

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Question 2 – Draft-Bills-Reports – Appeals, Review and Revision in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. When Commissioner of CGST feels that the order passed is not legal and proper, whether he can revise the order himself ?. Ans. No. The Commissioner of CGST cannot revise the order. In the model law, for CGST and SGST, there are different provisions in this regard. For CGST, as per Section 79(2), the Commissioner of CGST if he finds an order or decision

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Question 1 – Draft-Bills-Reports – Appeals, Review and Revision in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. Whether any person aggrieved by any order or decision passed against him has the right to appeal? Ans. Yes. Any person aggrieved by any order or decision passed against him has the right to appeal. It must be an order or decision passed by an adjudicating authority . However, some decisions or orders (as provided for in Section 93) are not appealable.

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Question 20 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. What happens when the estate of a taxable person is under the control of Court of Wards? Ans. Where the estate of a taxable person owning a business in respect of which any tax, interest or penalty is payable is under the control of the Court of Wards/Administrator General / Official Trustee / Receiver or Manager appointed under any order of a Court, the tax, inte

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Question 19 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 19 – Q 19. What happens to the tax liability of a taxable person, whose business is carried on by any guardian / trustee or agent of a minor? Ans. Where the business in respect of which any tax is payable is carried on by any guardian / trustee / agent of a minor or other incapacitated person on behalf of and for the benefit of such minor/incapacitated person, the tax, inter

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Question 18 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. What is the liability of partners of a partnership firm (Taxable person) to pay outstanding tax? Ans. Partners of any firm shall jointly and severally liable for payment of any tax, interest or penalty. Firm/ partner shall intimate the retirement of any partner to the Commissioner by a notice in writing – liability to pay tax, interest or penalty up to the date of

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Question 17 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 17 – Q 17. What happens to tax dues where the Company (taxable person) goes into liquidation? Ans. When any company is wound up and any tax or other dues determined whether before or after liquidation that remains unrecovered, every person who was a director of the company during the period for which the tax was due, shall jointly and severally be liable for payment of dues

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Question 16 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 16 – 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 business in whole/part, by sale, gift, lease, leave and license, hire, or in any other manner, then such person and the person to whom the busines

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Question 15 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 15 – 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 proceedings may be continued from the stage at which such proceedings stood immediately

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Question 14 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – 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 person in monthly instalments not exceeding twent

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Question 13 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – 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 become due to such person or who holds or may subsequently

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Question 12 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. Is there any time limit to issue notice in cases under Section 52-

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Question 11 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – 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 order has to be invariably issued within 1 year of date of issue of notice. However there is no time limit for i

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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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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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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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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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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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Question 5 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Is there any time limit to issue SCN or adjudicate the case u/s 51A/B

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Question 4 – Draft-Bills-Reports – Demands and Recovery – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. What is the relevant date for issue of Show Cause Notice under Sectio

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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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