TaxTMI 
TaxTMI 
Demands and Recovery
X X X X Extracts X X X X
X X X X Extracts X X X X
....cause notice under section 73? Ans. A person can make payment voluntarily either before issue of notice or within thirty days of issue of notice and file an intimation of such voluntary payment in form GST DRC-03. In such cases if paid before issue of notice, notice shall not be issued by the proper officer {sec.73 (6)} and if paid after issue of notice but within thirty days, all proceedings in respect of such notice shall be deemed to be concluded. {sec.73 (8)} Q 4. What is the form and manner in which payment of tax/interest/penalty before issue of notice under Section 73 or 74 will be communicated by the taxable person? Ans. In cases falling under Section 73, the taxable person has the option to discharge tax and interest liability before issuance of notice under Section 73(1) or statement under Section 73(3). Similarly, in cases falling under Section 74, the taxable person has the option to discharge tax/interest/penalty equal to 15% of tax liability before issuance of notice under Section 74(1) or statement under Section 74(3). If he opts to make such payment before issuance of notice, he shall make the payment of tax and interest and thereafter inform the proper officer ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or short paid or input tax credit wrongly availed or utilised relates to or from the date of erroneous refund. Q 8. How will the taxable person respond to the SCN issued under Section 73 or Section 74? Ans. The taxable person shall respond to the notices issued under Section 73 or Section 74 in FORM GST DRC-06. Q 9. What is the form and manner in which an order determining tax liability will be issued under Section 73 or Section 74? Ans. The order will be a speaking order after following due process of law. A summary of the order issued under section 73(9) or section 74(9) or section 76(3) shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax. Q 10. After issuance of order, is it necessary for the proper officer to issue a recovery notice? Ans. No. The order itself will be treated as a recovery notice. Q 11. Is there any time limit for adjudication the cases? Ans: (i) In case of section 73(cases other than fraud/ suppression of facts/wilful misstatement), the time limit for adjudication of cases is 3 years from the due date for filing of annual return for the financial....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 2. --For the purposes of this Act, the expression "suppression" shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer. Q 15. What is the time limit for initiation of recovery proceedings under CGST Act, 2017? Ans. Any amount payable by a taxable person in pursuance of an order passed under this Act shall be paid by such person within a period of three months from the date of service of such order failing which recovery proceedings shall be initiated. Provided that where the proper officer considers it expedient in the interest of revenue he may, for reasons to be recorded in writing, require the said taxable person to make such payment within such period less than a period of three months as may be specified. Q 16. What is the course of recovery in cases where the tax demand confirmed is enhanced in appeal/ revision proceedings? Ans. The notice of demand is required to be served only in respect of the enhanced dues. In so far as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the utilization of the amount available in electronic cash ledger of the registered person. Q 18. What are the modes of recovery of tax available to the proper officer? Ans. The proper officer may recover the dues in following manner: a) Deduction of dues from the amount owned by the tax authorities payable to such person. b) Recovery by way of detaining and selling any goods belonging to such person; c) Recovery from other person, from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government; d) Distrain any movable or immovable property belonging to such person, until the amount payable is paid. If the dues not paid within 30days, the said property is to be sold and with the proceeds of such sale the amount payable and cost of sale shall be recovered; e) Through the Collector of the district in which such person owns any property or resides or carries on his business, as if it was an arrear of land revenue; (f) By way of an application to the appropriate Magistrate who in turn shall proceed to recover the amount as if it were a fine imposed by ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (5) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12. (6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods. (7) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. Q 21. How will the dues owed by the defaulter be recovered by the proper officer from a third person (a bank, post office, insurer etc.) who holds money on behalf of the defaulter? Ans. (1) The proper officer may serve upon a person referred to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ovided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151. (2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect. (3) Where the property subject to the attachment or distraint under sub-rule (1) is- (a) an immovable property, the order of attachment or distraint shall be affixed on the said property and shall remain affixed till the confirmation of sale; (b) a movable property, the proper officer shall seize the said property in accordance with the provisions of chapter XIV of the Act and the custody of the said property shall either be taken by the proper officer himself or an officer authorised by him. (4) The property attached or distrained shall be sold through auction, i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....own account and partly on account of some other person, the proper officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or distraint. (11) Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12 specifying the details of the property, date of transfer, the details of the bidder and the amount paid and upon issuance of such certificate, the rights, title and interest in the property shall be deemed to be transferred to such bidder: Provided that where the highest bid is made by more than one person and one of The mis a c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable. Q 27. How will proper officer attach an interest in partnership of the defaulter? (Rule 153) Ans. (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, and direct accounts and enquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require. (2) The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same. Q 28. How will the amounts recovered as proceeds of sale of goods or movabl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... any further notice. {sec.80 of CGST Act} Q 33. In what manner, will the Commissioner deal with a request for payment of tax and other amounts in instalments? (Rule 158) Ans. (1) On an application filed electronically by a taxable person, in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in instalments in accordance with the provisions of section 80, the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount. (2) Upon consideration of the request of the taxable person and the report of the jurisdictional officer, the Commissioner may issue an order in FORM GST DRC-21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly instalments, not exceeding twenty-four, as he may deem fit. (3) The facility shall not be allowed where- (a) the taxable person has already defaulted on the payment of any amount under the Act or the IGST/UTGST/SGST Act(s), 2017, for which the recovery process is on; (b) the taxable person has not been allowed to make payment in in....