Notice under Sec 63 of CGST Act, 2017

[HNA CharteredAccountants]

XYZ received notice on 13-01-2025 under Sec 63 for FY 2017-18. However, on the date of issueance of notice, XYZ is registered. Please share your views if the same can be done by the department ?

Further Sec 63 talks about issuance or order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates, in this case, what shall be the due date for FY 2017-18 for passing the order ?

AI Summary

Best judgment assessment under Sec 63 may apply where taxable persons were liable but remained unregistered; registration affects jurisdiction.
Section 63 permits a best judgment assessment against persons who were liable to register but remained unregistered, and against those whose registration was cancelled yet remained liable to tax; voluntary registration without prior liability typically precludes Section 63 action for earlier periods. Disputes arise where the taxpayer is currently registered, with arguments that present registration ousts Section 63 jurisdiction for prior periods. The time limit for issuing an assessment is computed from the annual return due date; for 2017-18 the extended annual return due date in early February 2020 yields a five-year limitation endpoint in early February 2025.