Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit
42\/16\/2018-GST Dated:- 13-4-2018 CGST – Circulars \/ Ordes
GST
Circular No. 42\/16\/2018-GST
\nCBEC-20\/16\/03\/2017-GST
\nGovernment of India
\nMinistry of Finance
\nDepartment of Revenue
\nCentral Board of Indirect Taxes and Customs
\nGST Policy Wing
\n****
\nNew Delhi, Dated the 13th April, 2018
\nTo
\nThe Principal Chief Commissioners\/Chief Commissioners\/ Principal Commissioners\/ Commissioner of Central Tax (All) \/ The Principal Directors General\/ Directors General (All)
\nSub: Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit-reg.
\nMadam\/ Sir,
\nKind attention is invited to the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) relating to the recovery of arrears of central excise duty \/service tax and CENVAT credit thereof, CENVAT credit c<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 1944 and Chapter V of the Finance Act, 1994) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h revision, any amount is found to be recoverable or any amount of CENVAT credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [Section 142(9)(a)of the CGST Act refers]. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n id through the utilization of the amount available in electronic cash ledgerof the registered person and the same shall be recorded in Part II of the Electronic Liability Register (FORM GST PMT-01). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit42\/16\/2018-GST Dated:- 13-4-2018 CGST – Circulars \/ OrdesGSTCircular No. 42\/16\/2018-GST CBEC-20\/16\/03\/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing **** New Delhi, Dated the 13th April, 2018 … Continue reading “Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11428","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11428"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11428\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\ni) Recovery of arrears of wrongly availed CENVAT Credit:
\nIn case where any proceeding of appeal, review or reference relating to a claim for CENVAT credit had been initiated, whether before, on or after the appointed day, under the existing law, any amount of such credit becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [Section 142(6)(b) of the CGST Act refers].
\nii) Recovery of CENVAT Credit carried forward wrongly:
\nCENVAT credit of central excise duty\/service tax availed under the existing law may be carried forward in terms of transitional provisions as per section 140 of the CGST Act subject to the conditions prescribed therein. Any credit which is not admissible in terms of section 140 of the CGST Act shall not be allowed to be transitioned or carried forward and the same shall be recovered as an arrear of tax under section 79 of the CGST Act.
\niii) Rec<\/p>\n
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\n4. In view of the above legal provisions, recovery of central excise duty\/ service tax and CENVAT credit thereof arising out of the proceedings under the existing law, unless recovered under the existing law, and that of inadmissible transitional credit,is required to be made as an arrear of tax under the CGST Act.The following procedure is hereby prescribed for the recovery of arrears:
\n4.1 Recovery of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law and inadmissible transitional credit:
\n(a) The CENVAT credit of central excise duty or service tax wrongly carried forward as transitional credit shall be recovered as central tax liability to be paid through the utilization of amoun<\/p>\n
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\n(b) The arrears of interest, penalty and late fee in relation to arrears of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law arising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in the electronic cash ledger of the registered person and the same shall be recorded in Part II of the Electronic Liability Register (FORM GST PMT-01).
\n4.3 Payment of central excise duty & service tax on account of returns filed for the past period:
\nThe registered person may file Central Excise \/ Service Tax return for the period prior to 1st July, 2017 by logging onto www.aces.gov.in and<\/p>\n
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