Can unutilized Input tax credit be allowed as refund?

Can unutilized Input tax credit be allowed as refund?
Question 2
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Can unutilized Input tax credit be allowed as refund?
Ans. Yes, but only in following cases as given in sub-section (2) of section 38:-
(i) Exports of goods on which export duty is not payable;
(ii) Exports of services;
(iii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on Outputs.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is refund?

What is refund?
Question 1
Bill
Refunds
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is refund?
Ans. Refund has been discussed in section 38 of the MGL. “Refund” includes refund of tax on goods and/or services exported out of India or on inputs or input services used in the goods and/or services which are exported out of India, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit as provided under section

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Under what circumstances can a special audit be instituted?

Under what circumstances can a special audit be instituted?
Question 22
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 22. Under what circumstances can a special audit be instituted?
Ans. A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.
–
Statute, statutory provisions legi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What would be the action by the proper officer upon conclusion of the audit?

What would be the action by the proper officer upon conclusion of the audit?
Question 21
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 21. What would be the action by the proper officer upon conclusion of the audit?
Ans. The proper officer must without delay inform the taxable person about his findings, reasons for findings and the taxable person's rights and obligations in respect of such findings.
–
Statute, statutory provisions legislat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What are the obligations of the taxable person when he receives the notice of audit?

What are the obligations of the taxable person when he receives the notice of audit?
Question 20
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. What are the obligations of the taxable person when he receives the notice of audit?
Ans. The taxable person is required to:
a) facilitate the verification of accounts/records available or requisitioned by the authorities,
b) provide such information as the authorities may require for the conduct

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is meant by commencement of audit?

What is meant by commencement of audit?
Question 19
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. What is meant by commencement of audit?
Ans. The term 'commencement of audit' is important because audit has to be completed within a given time frame in reference to this date of commencement. Commencement of audit means the later of the following:
a) the date on which the records/accounts called for by the audit authorities are made availab

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the period within which the audit is to be completed?

What is the period within which the audit is to be completed?
Question 18
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. What is the period within which the audit is to be completed?
Ans. The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of the Commissioner.
–
Statute, statutory provisions legislation, law, enactment, A

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Who can conduct audit of taxpayers?

Who can conduct audit of taxpayers?
Question 16
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. Who can conduct audit of taxpayers?
Ans. As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is summary assessment order to be necessarily passed against the taxable person?

Is summary assessment order to be necessarily passed against the taxable person?
Question 15
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Is summary assessment order to be necessarily passed against the taxable person?
Ans. No. In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?

Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Question 14
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Ans. A taxable person against whom a summary assessment order has been passed can apply for its withdrawal to the jurisdictional Additional/Joint Co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Under what circumstances can a tax officer initiate Summary Assessment?

Under what circumstances can a tax officer initiate Summary Assessment?
Question 13
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. Under what circumstances can a tax officer initiate Summary Assessment?
Ans. As per section 48 of MGL, Summary Assessments can be initiated to protect the interest of revenue when:
(a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and
(b) the proper o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?

What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Question 12
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Ans. Section 47 of MGL provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgmen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?

Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
Question 10
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
Ans. The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand withdrawn if the taxable person furnishes a valid return for the default peri

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?

If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
Question 9
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
Ans. The proper officer has to first issue a notice to the defaulting taxable person under section 32

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?

Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?
Question 8
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?
Ans. As this provision relates to 'best judgment assessment', giving a notice to the taxable person is not required.
–
Statute, statutory provisions legislation, law

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?

What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?
Question 7
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?
Ans. If the taxable person does not provide a satisfactory explanati

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =