Please let us know whether the Department as per GST Act can recover the confirm demand either in the form of adjustment with assessee’s refund claim or any other way, when the period to appeal against the said demand is yet to expire.
If no, how the demand being reflected in the GST Portal be “by-passed/ ignored” to sanction the full refund
GST Department Can't Adjust Confirmed Demand with Refund Before Appeal Period Ends, Violates Section 54(10) CGST Act 2017. A query was raised about whether the GST Department can recover a confirmed demand by adjusting it with an assessee's refund claim before the appeal period expires. Responses indicated that such recovery is not in line with GST laws and is seen as unconstitutional due to discrepancies between the Common Portal System and GST Acts. It was suggested to notify the jurisdictional Commissioner and Nodal Officer, GSTN. According to Section 54(10) of the CGST Act, 2017, the department can withhold or deduct refunds if the taxpayer has outstanding liabilities. However, coercive recovery actions are not permissible before the appeal period ends. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
