Goods and Services Tax

What happens to the tax liability of a taxable person, whose business is carried on by any guardian/ trustee or agent of a minor?
Question 20
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. 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 inca

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What is the liability of partners of a partnership firm (Taxable person) to pay outstanding tax?
Question 19
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. 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 be liable for payment of any tax, interest or penalty.
Firm/ partner shall intimate the retirement of any partner to the Commissioner by a notice

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What is the liability of directors of the Company (taxable person) under liquidation?
Question 18
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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

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What happens to tax dues where the Company (taxable person) goes into liquidation?
Question 17
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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

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If a taxable person with pending tax dues, transfers his business to another person, what would happen to the tax dues?
Question 16
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. If a taxable person with pending tax dues, transfers his business to another person, what would happen to the tax dues?
Ans. The person, to whom the business is transferred, shall jointly and severally be liable to pay the tax, interest or penalty due from the taxable person

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What is the course of recovery in cases where the tax demand confirmed is enhanced in appeal/ revision proceedings?
Question 15
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. What is the course of recovery 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/revi

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Whether the payment of tax dues can be made in installments?
Question 14
Bill
Demands and Recovery
Faq On GST (2nd Edition) Dated 31.3.2017
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 exc

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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 (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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Statute, statutory provisions legislation, law, enactment,

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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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Statute, statutory provisions legislation, law, enactment, A

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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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Statute, statu

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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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Statute, statutory provisi

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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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