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

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.... CBEC-20/16/03/2017-GST dated 13.04.2018 (copy enclosed) by the Commissioner GST, Central Board of Indirect Taxes and Customs, GST Policy Wing, New Delhi regarding the provisions Of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) relating to the recovery of arrears of central excise duty /service tax and CENVAT credit thereof, CENVAT credit carried forward erroneously 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 ....

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.... terms of section 140 of the CGST 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 CGST Act. iii) Recovery of arrears of central excise duty and service tax: 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 CGST Act [Section 142(8)(a) of the CGST Act refers]. b. If due to any proceedings of appeal, review or reference relating to output duty or tax liability initiated, whether before,....

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....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 central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law arising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as central 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). 4.2 Recovery of interest, penalty and late fee payable: a) The arrears of interest, penalty....