Instructions regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit

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....aka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Act) relating to the recovery of arrears of Value Added Tax and input tax credit thereof, input tax credit carried forward erroneously and recovery of arrears of Entry Tax and other taxes leviable under the existing law and related interest, penalty or late fee payable arising as a result of the proceedings of assessment, adjudication, appeal etc. initiated before, on or after the appointed date under the provisions of the existing law. In this regard, representations have been received seeking clarification on the procedure for recovery of such arrears in the GST regime. 2. The issues have been examined and to ensure uniformity by the jurisdictional officers in th....

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....dit availed under the existing law may be carried forward in terms of transitional provisions as per section 140 of the KGS T Act subject to the conditions prescribed therein. Any credit which is not admissible in terms of section 140 of the KGST 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 KGST Act. iii) Recovery of arrears of tax under the existing law: a. Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an ....

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....rising out of the proceedings under the existing law or recovery of Entry Tax and other taxes leviable under the existing law, credit thereof under the existing law and inadmissible transitional credit: (a) The credit of Value Added Tax wrongly carried forward as transitional credit shall be recovered as State tax liability to be paid through the utilization of amounts available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part Il of the Electronic Liability Register (FORM GST PMT-01). (b) The arrears of Value Added Tax, or wrongly availed input tax credit thereof or of entry tax and other taxes leviable under the existing law arising out of any of the situations....