SUPERINTENDENT OF CENTAL TAX AS A ‘PROPER OFFICER’
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 29-7-2017
Proper Officer
Section 2(91) of Central Goods and Services Tax Act, 2017 defines the expression 'proper officer' in relation to any function to be performed under this Act, the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board.
Superintendent as proper officer
Vide Circular No/ 1/1/2017, dated 26.06.2017 the Board in exercise of the powers conferred by section 2(91) of CGST Act read with section 20 of IGST Act, and subject to section 5(2) of CGST Act, 2017, assigned the Superintendent of central tax as proper officer in the following cases –
* Section 25 (8) – Section 25 deals with the procedure for registration. Section 25(8) provides that where a person who is liable to be registered under this Act fails to obtain registration, the Superintendent may, without prejudice to
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endment in the registration particulars without giving the person an opportunity of being heard.
* Section 29 – Section 29 deals with the procedure for cancellation of registration. Section 29(1) provides that the Superintendent may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,
* the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
* there is any change in the constitution of the business; or
* the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24.
Section 29(2) provides that the Superintendent may cancel the registration of a person from
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rded to the Superintendent who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of three working days from the date of submission of the application.
Rule 9(2) provides that where the application submitted under rule 8 is found to be deficient, either in terms of any information or any document required to be furnished under the said rule, or where the Superintendent requires any clarification with regard to any information provided in the application or documents furnished therewith, he may issue a notice to the applicant electronically in FORM GST REG-03 within a period of three working days from the date of submission of the application and the applicant shall furnish such clarification, information or documents electronically, in FORM GST REG-04, within a period of seven working days from the date of the receipt of such notice.
Rule 9(3) provides that where t
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grant of registration shall be deemed to have been approved.
* Rule 10 – Rule 10 provides for the procedure of issue of registration certificate. Rule 10 (4) provides that every certificate of registration shall be duly signed or verified through electronic verification code by the Superintendent under the Act.
* Rule 12 – Rule 12 deals with the grant of registration to persons required to deduct tax at source or to collect tax at source. Rule 12 (1) provides that any person required to deduct tax in accordance with the provisions of section 51 or a person required to collect tax at source in accordance with the provisions of section 52 shall electronically submit an application, duly signed or verified through electronic verification code, in FORM GST REG-07 for the grant of registration through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Rule 12 (2) provides that the Superintendent may grant registration after due verificat
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stration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG- 12.
* Rule 17 – Rule 17 deals with the procedure of assignment of Unique Identity Number to certain special entities. Rule 17(1) provides that every person required to be granted a Unique Identity Number in accordance with the provisions of sub-section (9) of section 25 may submit an application electronically in FORM GST REG-13, duly signed or verified through electronic verification code, in the manner specified in rule 8 at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. Rule 17(2) provides that the Superintendent may, upon submission of an application in FORM GST REG-13 or after filling up the said form, assign a Unique Identity Number to the said person and issue a certificate in FORM GST REG-06 within a period of three working days from the date of the submission of
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be not satisfactory or where no reply is furnished in response to the notice issued under sub-rule (2) within the period prescribed in sub-rule (3), the Superintendent shall reject the application submitted under sub-rule (1) and pass an order in FORM GST REG -05.
Rule 19(5) provides that If the Superintendent fails to take any action,-
* within a period of fifteen working days from the date of submission of the application, or
* within a period of seven working days from the date of the receipt of the reply to the notice to show cause under sub-rule (3),
the certificate of registration shall stand amended to the extent applied for and the amended certificate shall be made available to the registered person on the common portal.
* Rule 22 – Rule 22 provides the procedure for cancellation of registration. Rule 22(1) provides that where the Superintendent has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice
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tendent shall drop the proceedings and pass an order in FORM GST REG -20.
* Rule 24 – Rule 24 provides for the procedure of migration of persons registered under the existing law. Rule 24(2)(c) provides that if the information and the particulars furnished in the application are found, by the Superintendent, to be correct and complete, a certificate of registration in FORM GST REG-06 shall be made available to the registered person electronically on the common portal.
Rule 24(3) provides that where the particulars or information specified in sub-rule (2) have either not been furnished or not found to be correct or complete, the Superintendent shall, after serving a notice to show cause in FORM GST REG-27 and after affording the person concerned a reasonable opportunity of being heard, cancel the provisional registration granted under sub-rule (1) and issue an order in FORM GST REG-28.
Rule 24(4) provides that every person registered under any of the existing laws, who is not liab
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ounted for, as if such goods or services or both had been supplied by such person and the provisions of section 73 or section 74 shall mutatis mutandis apply for determination of goods.
* Section 61(1) and (3)- Section 61 deals with the scrutiny of returns. Section 61 (1) that the Superintendent of central tax may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
Section 61(3) provides that in case no satisfactory explanation is furnished within a period of 30 days of being informed by the Superintendent or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the Superintendent may initiate appropriate action including those under
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d or utilized, the Superintendent may initiate action under section 73 or section 74.
* Section 66 (6) – Section 66 deals with the special audit to be ordered to be conducted. Section 66(6) provides that where the special audit conducted results in detection of tax not paid or short paid or erroneously paid, the Superintendent may initiate action under section 73 or 75.
* Section 67 (11) – Section 67 deals with inspection, search, seizure and arrest. Section 67 (11) provides that where the Superintendent has reasons to believe that any person has evaded or is attempting to evade the payment of any tax, he may, for reasons to be recorded in writing, seize the accounts, registers or documents of such persons produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedings under this Act or the rules made there under for prosecution.
* – Section 70(1) provides that the Superintendent shall have p
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has wrongly availed or utilized input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made there under.
* Section 73(2) – Section 73 (2) provides that the Superintendent shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order.
* Section 73(3) – Section 73(3) provides that where a notice has been issued for any period under sub-section (1), the Superintendent may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for such periods other than those covered under sub-section (1), on the person chargeable with tax.
* Section 73(5) – Section 73 (5) provides that the person chargeable with tax may, before service of notice under sub-sec
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s that the Superintendent shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to 10% of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.
* Section 73(10). – Section 73 (10) provides that the Superintendent shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to or within three years from the date of erroneous refund.
* Rule 56 (6) – Rule 56 deals with the maintenance of accounts by registered person. Rule 56(6) provides that if any taxable goods are found to be stored at any place(s) other than those declared under sub-rule (5) without the cover of any valid documents, the Superintendent shall determine the amount of tax payable on such goods as if such goods have bee
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inform the same or furnish an explanation for the discrepancy in FORM GST ASMT- 11 to the Superintendent.
* Rule 99(3) – Rule 99(3) provides that where the explanation furnished by the registered person or the information submitted under sub-rule (2) is found to be acceptable, the Superintendent shall inform him accordingly in FORM GST ASMT-12
* Rule 132 (1) – Rule 132 deals with the power to summon persons to give evidence and produce documents. Rule 132 (1) provides that the Director General of Safeguards, or an officer authorized by him in this behalf, shall be deemed to be the Superintendent to exercise the power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing under section 70 and shall have power in any inquiry in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).
* Rule 142 (1) – Rule 142 deals with the issue of notic
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ndent shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04.
* Rule 142- Rule 142 provides for the issue of notice for demand of amounts payable under this Act.
Rule 142(1) provides that the Superintendent shall serve, along with the-
* notice under sub-section (1) of section 73 or sub-section (1) of section 74 or sub-section (2) of section 76, a summary thereof electronically in FORM GST DRC-01,
* statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02,
specifying therein the details of the amount payable.
Rule 142(2) provides that where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, he shall inform the Superinte
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es and the said officer-in-charge shall depute sufficient number of police officers for providing such assistance.
Conclusion
In the above said sections and rules in the place of 'proper officer' the term 'Superintendent' has been substituted. This article may be useful to the clients, professionals and also the officials in the Department to have the details of powers and functions of Superintendent in the GST regime.
Reply By KASTURI SETHI as =
Sir,
Comprehensive and artfully threaded into capsule.
Dated: 29-7-2017
Reply By ALOKE GHOSH as =
Sir,
A unique article with all features and very much helpful. We expect more such informative article from you.
Dated: 31-7-2017
Reply By A SUBRAHMANYAM as =
Yes Sir. Seemingly enormous powers under the so-called e-compliance and "easy" GST !! Plenty of scope for the "silent strong-hand" of the so-called "Inspector-Raj." When Law stipulates a "compliance," no option. We have to comply and subm
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