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

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....thereof, input tax 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 in the GST regime. 2. The issues have been examined and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Commissioner of State Tax, in exercise of its powers- conferred under section 168 (1) of the Gujarat Goods and Services Tax Act, 2017, (hereinafter referred to as the "GGST Act") hereby specif....

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....cation 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 GGST Act [Section 142(8)(a) of the GGST 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 appointed day, under the existing law, any amount of output tax becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the GGST Act [Section 142(7)(a)of the GGST Act refers]. iv) Recovery of arrears due to revisio....

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....ny of the situations discussed in para 3 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 Recovery of interest, penalty and late fee payable: (a) The arrears of interest, penalty and late fee in relation to input tax credit wrongly carried forward, arising out of any of the situations discussed in para 3 above, shall be recovered as interest, penalty and late fee of state tax to be paid through the utilization of the amount available in electro....