Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit - reg.

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....ax Act, 2017 (hereinafter referred to as the DGST 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 other taxes leviable under the existing law and related interest, penalty or late fee payable arising as a of the proceedings of assessment, appeal, revision, review and reference etc. initiated before, on or after the appointed date under the provisions of the existing law or due to revision of return under 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 in the impl....

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.... allowed to be transitioned or carried forward and the same shall be recovered as an arrear of tax under the DGST Act. iii) Recovery of arrears of value added tax or and other taxes leviable 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 arrear of tax under the DGST Act [Section 142(8)(a) of the DGST Act refers]. b. If due to any proceedings of appeal, review or reference relating to output tax liability initiated, whether before, on or after the app....

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....mounts available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part II of the Electronic Liability Register (FORM GST PMT-01). (b) The arrears of value added tax, or wrongly availed input tax credit thereof and other taxes leviable under the existing law arising out of any of the situations discussed in para 2 above, shall, unless recovered under the existing law, 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 II of the Electronic Liability Register (FORM GST PMT-01).  4.2 Rec....