Goods and Services Tax

What are the modes of recovery of tax available to the proper officer?
Question 13
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. What are the modes of recovery of tax available to the proper officer?
Ans.
The proper officer may recover the dues in following manner:
a) Deduction of dues from the amount owned by the tax authorities payable to such person.
b) Recovery by way of detaining and selling any goods belonging to such person;
c) Recovery from other person, from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government;
d) Distrain any movable or immovabl

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What is the time limit to issue notice in cases under Section 76 i.e. taxes collected but not paid to Government?
Question 12
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. What is the time limit to issue notice in cases under Section 76 i.e. taxes collected but not paid to Government?
Ans. There is no time limit. Notice can be issued on detection of such cases without any time limit.
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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?
Question 11
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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 year of date of i

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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 (2nd Edition) Dated 31.3.2017
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 rec

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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?
Question 9
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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 p

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In case a notice is adjudicated under Section 74 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 (2nd Edition) Dated 31.3.2017
Q 8. In case a notice is adjudicated under Section 74 and order issued confirming tax demand and penalty, does the noticee have any option to pay reduced penalty?
Ans. Yes. if any person pays the tax determined by the order along with interest

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If notice is issued under Section 74 and thereafter the noticee makes payment, is there any need to adjudicate the case?
Question 7
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. If notice is issued under Section 74 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 74, pays the tax along with interest with penalty equal to 25% of s

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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?
Question 6
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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

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Is there any time limit for adjudication the cases?
Question 5
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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. {sec.73(10)}
(ii) In case of section 74(ca

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What is the relevant date for issue of Show Cause Notice?
Question 4
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. What is the relevant date for issue of Show Cause Notice?
Ans.
(i) In case of section 73(cases other than fraud/ suppression of facts/willful misstatement), the relevant date shall be counted from the due date for filing of annual return for the financial year to which demand relates to.
The SCN has to be adjudicated within at period

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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?
Question 3
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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 i

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What if person chargeable with tax, pays the amount along with interest before issue of show cause notice under section 73?
Question 2
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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)}
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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?
Question 1
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
15. Demands and Recovery
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

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Can the refund claim be rejected without assigning any reasons?
Question 26
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 26. Can the refund claim be rejected without assigning any reasons?
Ans. No. When the proper officer is satisfied that the claim is not admissible he shall issue a notice in Form GST RFD-08 to the applicant requiring him to furnish a reply in GST RFD -09 within fifteen days and after consideration of the applicant's reply, he can accept or reject

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What happens if there are deficiencies in the refund claim?
Question 25
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 25. What happens if there are deficiencies in the refund claim?
Ans. Deficiencies, if any, in the refund claim has to be pointed out within 15 days. A form GST RFD-03 will be issued by the proper officer to the applicant pointing out the deficiencies through the common portal electronically requiring him to file a refund application after rectificatio

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Is there any specified format for sanction of refund claim?
Question 24
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 24. Is there any specified format for sanction of refund claim?
Ans. The claim of refund will be sanctioned by the proper officer in Form GST RFD-06 if the claim is found to be in order and payment advice will be issued in Form GST RFD05. The refund amount will then be electronically credited to the applicants given bank account.
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Is there any specified format for filing refund claim?
Question 23
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 23. Is there any specified format for filing refund claim?
Ans. Every claim of refund has to be filed in Form GST RFD 1. However, claim of refund of balance in electronic cash ledger can be claimed through furnishing of monthly/quarterly returns in Form GSTR 3, GSTR 4 or GSTR 7, as the case may be, of the relevant period.
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What is the time period within which provisional refund has to be given?
Question 22
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. What is the time period within which provisional refund has to be given?
Ans. Provisional refund to the extent of 90% of the amount claimed on account of zero-rated supplies in terms of sub-section (6) of section 54 of the CGST/SGST Act has to be given within 7 days from the date of acknowledgement of complete application for refund c

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What is the time period within which an acknowledgement of a refund claim has to be given?
Question 21
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 21. What is the time period within which an acknowledgement of a refund claim has to be given?
Ans. Where an application relates to a claim for refund from the electronic cash ledger as per sub-section (6) of section 49 of the CGST/SGST Act made through the return furnished for the relevant tax period the acknowledgement

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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 (2nd Edition) Dated 31.3.2017
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 the ITC) an

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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 (2nd Edition) Dated 31.3.2017
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. There is no such provision in the GST law. They will have to procure goods upon payment of tax and c

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How will the applicant prove that the principle of unjust enrichment does not apply in his case?
Question 18
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. How will the applicant prove that the principle of unjust enrichment does not apply in his case?
Ans. Where the claim of refund is less than ₹ 2 Lakh, a selfdeclaration by the applicant based on the documentary or other evidences available with him, certifying that the incidence of tax has not been passed

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Will the principle of unjust enrichment apply to exports and supplies to SEZ Units?
Question 17
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. Will the principle of unjus

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In case of refund under exports, whether BRC is necessary for granting refund?
Question 16
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. In case of refund under exports, whether BRC is necessary for granting refund?
Ans. In case of refund on account of export of goods, the refund rules do not prescribe BRC as a necessary document for filing of refund claim. However, for export of services details of BRC is required to be submitted along with the application for r

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Whether refund can be made before verification of documents?
Question 15
Bill
Refunds
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. Whether refund can be made before verification of documents?
Ans. In case of any claim of refund to a registered person on account of zero rated supplies of goods or services or both (other than registered persons as may be notified), 90% refund may be granted on provisional basis before verification subject to such conditions and restrictions as

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