Payment of tax & intimation thereof (section73(5) & 74(5) )-How?

[SUSHIL BANSAL]

Dear experts,

Section 73(5) & 74(5) says..

The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.

On the above provisions I have certain querries:

1. suppose one dealer claimed excess ITC in one month & then revered in subsequent month & ITC got adjusted..whether this reversal will be treated as tax paid.In another situation if the excess ITC reversed & the tax paid in cash through 3B, whether this will be treated as tax paid.

2. In the section it is mentioned that “and inform the proper officer in writing of such payment.”…what will be the process of giving information. Whether 3B filed (reversing excess ITC) is to be treated as intimations.Whether the GSTR-9 table 12 (reversal in next FY) will be treated as information.

DRC-03 is treated as tax paid & intimation. But in above case no DRC-03.

Plz guide how to deal the case,any circular/case laws in the matter.

[KASTURI SETHI]

(i) Inform in writing to the jurisdictional GST Range Officer with a copy to the Adjudicating Authority.

(ii) Filing of return is also due intimation de jure. There are case laws to this effect on this issue. (pertaining to pre-GST Regime).

[SUSHIL BANSAL]

Sir,

if any case laws in your knowledge plz guide me

[Shilpi Jain]

This provision specifically mentions that the proper officer has to be informed in WRITING.

So please proceed to write to the officer to intimate the payment.

However, in cases where there is short payment in one month and subsequent month it is paid, I do on think it would be required to intimate in writing. This provision may not contemplate these kind of situations being covered hereunder.

AI Summary

Voluntary payment and written intimation: payment before notice must be informed to the proper officer; returns may suffice. Voluntary payment before issuance of notice allows a liable person to pay tax and interest on self ascertainment or officer ascertained tax, but the statute requires informing the proper officer in writing of such payment; filing of the return has been held in related pre GST precedents to constitute de jure intimation, though practical views differ on whether routine reversal of input tax credit in subsequent returns or adjustments across periods obviate a separate written intimation. The practical recommendation is to send a written intimation to the jurisdictional officer, copying the Adjudicating Authority.