GST – GST FAQ 2nd Edition – June 2017 as Updated as on 1.1.2018 – 15 – Q 1. Which are the applicable sections 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 73 deals with the cases where there is no invocation of fraud/suppression/mis-statement etc. Section 74 deals with cases where the provisions related to fraud/suppression/mis-statement etc. are invoked. Q 2. What if person chargeable with tax, pays the amount along with interest before issue of show cause notice under section 73? Ans. In such cases notice shall not be issued by the proper officer. {sec.73 (6)} Q 3. If show cause notice is issued under Section 73 and thereafter the noticee makes payment along with applicable interest, is there any need to adjudicate the case? Ans. If the person 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 no
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ion. {sec.74(2&10)} Q 5. Is there any time limit for adjudication the cases? Ans: (i) In case of section 73(cases other than fraud/ suppression of facts/willful misstatement), the time limit for adjudication of cases is 3 years from the due date for filing of annual return for the financial year to which demand relates to or the date of erroneous refund/ITC wrongly availed. {sec.73(10)} (ii) In case of section 74(cases of fraud/suppression of facts/willful misstatement), the time limit for adjudication is 5 years from the due date for filing of annual return for the financial year to which demand relates to or the date of erroneous refund/ITC wrongly availed. {sec.74(10)} Q 6. Is there any immunity to a person chargeable with tax in cases of fraud/suppression of facts/ willful misstatement, who pays the amount of demand along-with interest before issue of notice? Ans. Yes. Person chargeable with tax, shall have an option to pay the amount of tax along with interest and penalty equa
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be deemed to be concluded. {sec.74 (11)} Q 9. What will happen in cases where notice is issued but order has not been passed under section 73 & 74 within time specified for adjudication under these sections? Ans. Section 75 (10) provides for deemed conclusion of the adjudication proceedings if the order is not issued within time limit prescribed under these sections. Q 10. What happens if a person collects tax from another person but does not deposit the same with Government? Ans. It is mandatory to pay amount, collected from other person representing tax under this act, to the government. For any such amount not so paid, proper officer may issue SCN for recovery of such amount and penalty equivalent to such amount. {Sec.76 (1&2)} Q 11. In case the person does not deposit tax collected in contravention of Section 76(1), what is the proper course of action to be taken? Ans. SCN may be issued and if so, an order shall be passed following Principles of natural justice within one
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proceeds of such sale the amount payable and cost of sale shall be recovered. e) Through the Collector of the district in which such person owns any property or resides or carries on his business, as if it was an arrear of land revenue. (f) By way of an application to the appropriate Magistrate who in turn shall proceed to recover the amount as if it were a fine imposed by him. (g) Through enforcing the bond /instrument executed under this Act or any rules or regulations made thereunder. (h) CGST arrears can be recovered as an arrear of SGST and vice-versa. {sec.79 (1,2,3,4)} Q 14. Whether the payment of tax dues can be made in installments? Ans. On receipt of any such request, 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 installments not exceeding twenty-four, subject to payment of interest under section 50 with suc
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f such transfer, whether such dues has been determined before such transfer, but has remained unpaid or is determined thereafter. {Sec. 85(1)} Q 17. What happens to tax dues where the Company (taxable person) goes into liquidation? Ans. When any company is wound up, every appointed receiver of assets ( Liquidator ) shall give intimation of his appointment to Commissioner within 30 days. On receipt of such intimation Commissioner may notify amount sufficient to recover tax liabilities/dues to the liquidator within 3 months. {Sec. 88(1,2)} Q 18. What is the liability of directors of the Company (taxable person) under liquidation? Ans. When any private 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 unless he proves to the satisfaction of the Commissioner that such non-re
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