Recovery u/s 79

[SUBRATA RAY]

During 3 months period of Appeal filing can jurisdictional officer can initiate recovery proceeding against any demand under GST

[Ganeshan Kalyani]

No Sir. But you have give them in writing that you are going to file an Appeal against the Order passed by them. Then they will not follow up with you for recovery of tax.

[KASTURI SETHI]

Pl.disclose the full facts & circumstances.

In case you have declared this very liability in GST returns or in statutory records, it means you have already admitted as per GST laws, and in such a situation, the department in initiate recovery proceedings under Section 79 of CGST Act, notwithstanding appeal period.

You cannot adopt contradictory stand. Full and true facts are required to be disclosed for more accurate and fool proof reply.

[KASTURI SETHI]

Section 79 of CGST Act corresponds to erstwhile Section 87 of the Finance Act, 1994 (Service Tax law). It is very 'dangerous' for assessee's point of view. In order to avoid avoidable lapse, an assessee must be able to interpret, analyze and understand the contents thereof .

AI Summary

Recovery under GST: department may initiate recovery during appeal if liability was admitted in returns; give written notice to appellant.
If the taxpayer has declared the liability in returns or statutory records such that it amounts to an admission, the department may commence recovery proceedings under Section 79 notwithstanding the pendency of the appeal period; by contrast, giving the department written notice that an appeal will be filed may lead officials to refrain from immediate recovery.