Short Note on Notifications under Central Goods and Services Tax Act, 2017

Notification 1
Central Government hereby appoints the 22nd day of June, 2017, as the date on which the provisions of sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 of the said Act shall come into force.

Notification 2
Appointment of officials Under Section 3 read with Section 5 of CGST

Notification 3
Rules under the CGST Act which may be called the Central Goods and Services Tax Rules, 2017.

Notification 4
The Central Government hereby notifies www.gst.gov.in as the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax and electronic way bill.

Notification 5
Registration of persons who are engaged in making supplies of taxable services and goods or both, on which the total tax is liable to be paid on reverse charges by the recipient of services or goods are exempted from obtaining registration.

Notification 6
Modes of verification of documents
• Aadhar card based verification
• Bank account based One Time Password (OTP)

Notification 7
Amendment of Rules

Notification 8
Limit of composition Scheme

Notification 9
The Central Government hereby appoints the 1st day of July, 2017, as the date on which the provisions of sections 6 to 9, 11 to 21, 31 to 41, 42 except the proviso to sub-section (9) of section 42, 43 except the proviso to sub-section (9) of section 43, 44 to 50, 53 to 138, 140 to 145, 147 to 163, 165 to 174 of the said Act, shall come into force.

Notification 10
Amendment to Rules

Notification 11
Amendment to Notification no 6 of mode of verification by substituting (ii)
(ii) Electronic verification code generated through net banking login on the common portal;
(iii) Electronic verification code generated on the common portal.”

Notification 12
Information as to how many HSN Code digits to be written depending on the turnover.

Notification 13
Fixing of Rate of interest under different  sections.

Notification 14
Appointment of officials Under section 3 read with section 5 of CGST Act.

Notification 15
Amendment of Rules and introduction GSTR 3B in Returns.

Notification 16
Conditions and safeguard for registered persons who intends to supply goods or services for export without payment of integrated tax, for furnishing a Letter of Undertaking in place of a Bond.

Notification 17
Further amendment to rules and some rules to GST Returs Including GSTR 3B and TRANS 1 & TRANS 2.

Notification 18
Time period of filing the return GSTR-1 for the month of July and August- 1st to 5th September 2017 and 16th to 20th September Respectively.

Notification 19
Time period of filing the return GSTR-2 for the month of July and August- 6th to 10th September 2017 and 21st to 25th September Respectively.

Notification 20
Time period of filing the return GSTR-3 for the month of July and August- 11th to 15th September 2017 and 25th to 30th September Respectively.

Notification 21
Last date of filing the return GSTR-3B for the month of July and August- 20th August 2017 and 20th September Respectively.

Notification 22
Further amendment of rules regarding Form GST ITC 01 and Manner of reversal of credit of Additional duty of Customs in respect of Gold dore bar.

Notification 23
Extension of date for filling GSTR 3B for persons wanting adjustment in TRANS 1 to 28th August From 20th August.

Notification 24
Extension of date of filing GSTR 3B from 20th August to 25th August.

Notification 25
Extension of the time limit for furnishing the return for the month of July, 2017, by a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 and rule 64 of the Central Goods and Services Tax Rules, 2017, till 15th day of September, 2017.

Notification 26
Last date of filing the return GSTR-6 for the month of July and August- 8th September 2017 and 23rd September Respectively.

Notification 27
Amendment of rules and information related to the E-Way Bill and other information related to enforcement of E Way Bill including time limit and exemption limit for which no E Way bill is required.

Notification 28
This notification waives the late fee payable under section 47 of the said Act, for all registered persons who failed to furnish the return in FORM GSTR-3B for the month of July, 2017 by the due date.

Notification 29
This notification extends the time limit for furnishing the details or return for GSTR 1, 2 and 3 for months of july august September.

Notification 30
Again extension of time limit for filing GSTR 1,2,3 for July 2017 .

Notification 31
The extension of the time limit, for furnishing the return under sub-section (4) of section 39 of the aforesaid Act, for the month of August, 2017

Notification 32
Hereby specifies the casual taxable persons making taxable supplies of handicraft goods as the category of persons exempted from obtaining registration under the aforesaid Act:
Provided that the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of twenty lakh rupees in a financial year.

Notification 33
The said persons shall be liable to deduct tax from the payment made or credited to the supplier of taxable goods or services or both with effect from a date to be notified subsequently
• Public sector undertakings
• Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860
• an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government

Notification 34
Amendment in the rules relating to GST TRANS 1 form and rules relating to the filing of returns by persons who have applied for registration
Person who has been granted registration on a provisional basis under rule 24 or who has applied for registration under sub-rule (1) of rule 8 may opt to pay tax under section 10 with effect from the first day of October, 2017 by electronically filing an intimation in FORM GST CMP-02 shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub – rule (4) of rule 44 within a period of ninety days from the said date but they cannot fill TRANS 1 form.

Notification 35
This notification specifies the date for filing the return for the months of August September October November and December.

Notification 36
This notification is for allowing the cancellation of the registered persons under GST and Revision of declaration in FORM GST TRAN-1

Notification 37
This notification specifies conditions and safeguards for furnishing a Letter of Undertaking in place of a Bond by a registered person who intends to supply goods or services for export without payment of integrated tax.

Notification 38
Notification for the amendment of notification no 32 for addition of persons who are not required to be registered under casual taxable person relating to handicraft.

Notification 39
The officers appointed under the respective State Goods and Services Tax Act, 2017 or the Union Territory Goods and Service Tax Act, 2017 who are authorized to be the proper officers for the purposes of section 54 or section 55 by the Commissioner of the said Acts, shall act as proper officers for the purpose of sanction of refund under section 54 or section 55 of the CGST Act

Notification 40
Hereby notifies the registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees and who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons shall be such as specified in the said Act.

Notification 41
Seeks to extend time limit for filing of Form GSTR 4

Notification 42
Seeks to extend time limit for filing of Form GSTR 5A

Notification 43
Seeks to extend time limit for filing of Form GSTR 6

Notification 44
Seeks to extend time limit for submission of GST ITC-01

Notification 45
Rules relating to GST CMP 02, rules of filing the refund by filing the GSTR 1 form for exporters and zero rated sales. This specifies filing of the Table 6 of the GSTR 1.
This also specifies Invoice-cum-bill of supply.- Notwithstanding anything contained in rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies.

Notification 46
This notification increases the limit of person opting for composition scheme from 75 lakhs to 1 crore.

Notification 47
Amendment of rules relating to persons who can apply of the refund in a deemed export case.

Notification 48
Notifies the supplies of goods listed in column (2) of the Table below as deemed exports
• Supply of goods by a registered person against Advance Authorisation
• Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
• Supply of goods by a registered person to Export Oriented Unit
• Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.

Notification 49
This notification specifies evidences which are required to be produced by the supplier of deemed export supplies for claiming refund-
• Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said Advance Authorisation or Export Promotion Capital Goods Authorisation holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it.
• An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.
• An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

Notification 50
Waives the late fee payable under section 47 of the said Act, for all registered persons who failed to furnish the return in FORM GSTR-3B for the months of August and September, 2017 by the due date

Notification 51
Amendment of rules specifying if the date for filing GSTR 1 is extended for registered persons then the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs

Notification 52 
Seeks to extend the due date of submission of details in form GST ITC-01

Notification 53
Seeks to extend the due date of submission of details in form GST ITC-04

Notification 54
Seeks to extend the last date of filing the returns GSTR 2 and 3 for months of August, September, October, November and December

Notification 55
Amendment of Rules
• Notwithstanding anything contained in this Chapter, in respect of any process or procedure prescribed herein, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.
• Appointment of Appellate Authority
• Form GST RFD 01A for manual filing of refund for exporters

Notification 56 
This notification specifies the last date of filing GSTR 3B for the months of January, February and March.

Notification 57
the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons who shall follow the special procedure as detailed below for furnishing the details of outward supply of goods or services or both. The said persons shall furnish the details of outward supply of goods or services or both in FORM GSTR-1 effected during the quarter.

Notification 58
This notification extends the time limit for filing the GSTR1 form for the registered persons having turnover less than 1.5 crore

Notification 59
Seeks to extend time limit for filing of Form GSTR 4

Notification 60 
Seeks to extend time limit for furnishing the returns in Form GSTR 5 for the month of July to October 2017

Notification 61
Seeks to extend time limit for furnishing the returns in Form GSTR 5A for the month of July to October 2017

Notification 62
Seeks to extend time limit for furnishing the returns in Form GSTR 6 for the month of July 2017

Notification 63
Seeks to extend the due date of submission of details in form GST ITC-04

Notification 64
This notification limits the late fee for filing of GSTR 3B from October 2017 onwards to Rs 25 per day only till such failure continues.
This also limits the late fee for filing of GSTR 3B from October 2017 onwards to Rs 10 per day only till such failure continues for persons who will be filing the NIL Return.

Notification 65
This notification specifies the persons making supplies of services, other than supplies specified under sub-section (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year, as the category of persons exempted from obtaining registration under the said Act:
Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir

Notification 66
Seeks to exempt all taxpayers from payment of tax on advances received in case of supply of goods.
Hereby notifies the registered person who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX of the said Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons shall be such as specified in the said Act.

Notification 67
Seeks to extend time limit for filing of Form GST ITC 01

Notification 68
Seeks to extend time limit for filing of Form GSTR 5

Notification 69
Seeks to extend time limit for filing of Form GSTR 5A

Notification 70
This mentions the new Table 6 in the GSTR1 form for filing of refund for deemed exports and zero rated supplies.

ELECTRONIG WAY BILL (E WAY BILL) UNDER GST ACT

1. Every registered person moving goods of consignment value exceeding fifty thousand rupees is required to furnish information in Part A of Form GST EWB-01, electronically before commencement of movement. 
2. Every registered person transporting goods as a consignor or the consignee may generate the e-way bill in Form GST EWB-01 after furnishing information in Part B of GST EWB-01. 
3. When goods are handed over to a transporter for transportation by road, an information relating to the transporter will be filed in Part B of Form GST EWB-01 on the common portal and the E-way bill shall be generated by the transporter on the basis of information furnished by the registered person is Part A of Form GST EWB-01
4. When goods are transported by railways or by air or by vessel, information in Part A of FORM GST EWB-01 shall be furnished by the consignor or the consignee.
5. When movement is caused by unregistered person in self-conveyance or through transporter, he or the transporter may generate the e way bill in FORM GST EWB-01.
6. Upon generation of the e-way bill, a unique eway bill number (EBN) would be provided to the supplier, recipient and transporter.
7. On change of conveyance in the course of transit the transporter shall update details of conveyance in the e-way bill on common portal in FORM GST EWB-01 Updation is not required for distance of ten kilometers or less.
8. Where multiple consignments are intended to be transported in one conveyance the transporter is required to indicate serial number of e-way bill generated for each consignment and consolidated FORM GST EWB-02 is to be generated prior to the movement of goods.
9. In case where the consignor the consignee has not generated FORM GST EWB-01 even when value of goods is more than fifty thousand rupees, the transporter is required to generate FORM GST EWB-01 on the basis of invoice, delivery challan etc. and also to generate a consolidated e-way bill in FORM GST EWB-02 prior to movement of goods
10. Information furnished in Part-A of FORM GST EWB-01 shall be provided to the registered supplier for use in furnishing return in FORM GSTR-1.
11. E-way bill can be cancelled within 24 hours of generation when goods are not being transported. However, an e-way bill verified during transit cannot be cancelled. Commissioner may extend validity period for goods specified by issue of Notification.
12. An e-way bill or a consolidated e-way bill generated would be valid for one day from relevant date where distance is upto 100 km, and one additional day for every 100 Kilometers or part thereof thereafter.
13. E-way Bill is not required to be generated for goods specified in Annexure to Rule 138 of Rules. It is also not required to be generated where goods are transported by a non-motorized vehicle or from Port/Airport etc and for transport in areas as specified by States.
14. E-way Bill alongwith invoice/bill/challan should be carried by person incharge of conveyance. E-way Bill can also be mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance.
15. A registered person may obtain an Invoice Reference Number from the common portal by uploading a tax invoice issued by him in FORM GST INV-1 which would be valid for thirty days.
16. On furnishing of information in FORM GST INV-01, the information in Part-A of FORM GST EWB-01 shall be automatically updated. 
17. A Class of transporters may be required to get a unique RFI devise embedded on conveyance and  to map the e-way bill to such devise before movement of goods.
18. RFI device may be got installed at places where the verification of movement of gods is required to be carried out and verification of movement of vehicles shall be done through such  device readers where the eway bill has been mapped with the said device. 
19. Commissioner may authorise proper officer to intercept any conveyance to verify e-way bill or the e-way bill number or to physically verify such conveyance. 
20. Proper officer is required to record online a summary report of every inspection in Part-A of FORM GST EWB-03 within 24 hours of such inspection and final report within 3 days.
21. Physical verification of conveyance shall not be done twice in the State unless there is specific information. 
22. Where a vehicle has been detained for a period exceeding 30 minutes, the transporter may upload said information on common portal in FOKM GST EWB-04.

APPEAL AND REVISION UNDER GST ACT

General

1. Right to appeal against an adverse decision or order passed under GST law is a statutory right available to all assessees who are aggrieved by such order
2. Right to appeal is not an absolute right and is conditioned by fretters of timely filing of appeal and mandatory payment of part dues as pre-deposit.
3. Where a proper officer under one Act (say CGST) has passed an order, any appeal/review/ revision/rectification against the said order will lie only with the proper officers of that Act only (CGST Act). So also, if any, order is passed by the proper officer of SGST, any appeal/review/revision/rectification will lie with the proper officer of SGST only.

Appeals to Appellate Authority, i.e., Commissioner (Appeals)

1. Any person aggrieved by any decision or order passed by an adjudicating authority may appeal to prescribed Appellate Authority, i.e., Commissioner (Appeals)
2. Time limit for filing appeal is three months from the date on which the decision or order is communicated. However, the Commissioner (Appeals) can, if sufficient cause is shown, condone delay of 30 days.
3. Appeal has to be filed in FORM GST APL-01.
4. A provisional acknowledgement shall be issued to the appellant immediately on filing appeal.
5. A hard copy of the appeal then shall be submitted in triplicate and shall be accompanied by a certified copy of the decision or order appealed against along with the supporting documents within seven days of filing electronic appeal.
6. A final acknowledgement, indicating appeal number shall be issued in FORM GST APL-02 to appellant. 
7. The date of filing will be issuance of provisional acknowledgment if hard copy as above is submitted within time. If the hard copy is submitted after 7 days, then relevant date would this date of submission. 
8. Appeal to Appellate Authority can also be filed by Department.
9. For this purpose, the Commissioner may can call for and examine the record of any proceedings in which an adjudicating authority subordinate to him has passed any decision or order for the purpose of satisfying himself as to the legality or propriety of the said decision or order.
10. If not satisfied he may pass an order directing any officer subordinate to him to apply to the Appellate Authority
11. The appeal has to be filed within six months from the date of communication of the said decision or order.
12. Authorized officer can file an appeal in FORM GST APL-03 electronically and also submit hard copies thereof accompanied by a certified copy of the decision or order appealed against along with the supporting documents within seven days.
13. Procedure before Appellate Authority, i.e., Commissioner (Appeals)
14. Commissioner (Appeals) will grant an opportunity of hearing to appellant.
15. The hearing can be adjourned for maximum three occasions by recording reasons in writing.
16. Commissioner (Appeals) can also allow to add/include grounds of appeal if satisfied that their omission was not willful or unreasonable.
17. The Commissioner (Appeals), as far as possible within one year of appeal, shall pass such order in writing, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against.
18. The case shall not be remanded back to the adjudicating authority.
19. In case it is proposed to issue an order enhancing any tax, fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit, a reasonable opportunity of showing cause against the proposed order will be given.
20. Commissioner (Appeals) shall also issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.

Revisionary proceedings against Adjudication orders

1. Adjudication orders passed by an officer subordinate to the Revisional Authority can be examined by Revisional Authority either on his motion or on request from the Commissioner of other GST laws.
2. This revision can be done if Revisional Authority considers Adjudication order to be erroneous or prejudicial to the interest of revenue or illegal or improper or has not taken into account certain material facts, or in consequence of an observation by the Comptroller and Auditor General of India.
3. Operation of such Adjudication order can be stayed for specified period
4. Fresh order can be passed by Revisional Authority as deem just and proper including, enhancing or modifying or annulling the said decision or order.
5. Person concerned has to be granted an opportunity of being heard
6. Revisionary power cannot be exercised within period available to assessee for filing appeal or where appeal has already been filed.
7. It can also not be exercised when more than three years have expired after the passing of the decision or order or the order has already been taken for revision under this section at an earlier stage or order already passed in revision.

Appeal to Appellate Tribunal (Second Appeal)

1. Appeal from the order of Appellate Authority, ie, Commissioner (Appeals) or Revisionary Authority shall lie to Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals.
2. This Tribunal will have a National Bench with Regional Benches and respective State Bench with Area Benches.
3. The National Bench or Regional Benches shall have jurisdiction to hear appeals against the orders passed by the Appellate Authority, Le, Commissioner (Appeals) or the Revisional Authority in the cases where one of the issues involved relates to the place of supply.
4. Oher matters will fall in jurisdiction of State Bench or Area Benches.
5. Appellate Tribunal can refuse to admit any appeal where the amount involved does not exceed fifty thousand rupees.
6. Time limit of three months from the date of communication is available to aggrieved person for filing appeal. Tribunal can condone delay for another three months.
7. The appeal has to be filed electronically, in FORM GST APL-05, on the common portal and a provisional acknowledgement shall be issued to the appellant immediately.
8. A hard copy of the appeal then shall be submitted in triplicate and shall be accompanied by a certified copy of the decision or order appealed against along with the supporting documents within seven days of filing electronic appeal.
9. A final acknowledgement, indicating appeal number shall be issued in FORM GST APL-02 to appellant. 
10. The date of filing will be issuance of provisional acknowledgment if hard copy as above is submitted within time. If the hard copy is submitted after 7 days, then relevant date would this date of submission.
11. Department can also file appeal to Tribunal against order passed by an Appellate or Revisionary Authority.
12. For this purpose, the Commissioner can call for and examine the record for the purpose of satisfying himself as to the legality or propriety of the said decision or order.
13. If not satisfied he may pass an order directing any officer subordinate to him to apply to the Appellate Tribunal.
14. The appeal has to be filed within six months from the date of communication of the said decision or order. Delay in filing can be condoned by Tribunal by another three months.
15. Authorized officer will file appeal in FORM GST APL-07 electronically and also submit hard copies thereof accompanied by a certified copy of the decision or order appealed against along with the supporting documents within seven days.
16. Cross objection can be filed in prescribed Memorandum by opposite party to appeal within forty five days of the receipt of notice of appeal. Such memorandum shall be disposed of by the Appellate Tribunal, as if it were an appeal.

Procedure before Appellate Tribunal

1. Appellate Tribunal will grant an opportunity of hearing to appellant
2. The hearing can be adjourned for maximum three occasions by recording reasons in writing.
3. Appellate Tribunal an also allow to add/include grounds of appeal if satisfied that their omission was not willful or unreasonable.
4. The Appellate Tribunal, as far as possible within one year of appeal, shall pass such order in writing, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against.
5. The Appellate Tribunal can also remand the case back to the Appellate or Revisional Authority.
6. The Appellate Tribunal has the power to rectify any error apparent on the face of the record, if such error is noticed by it on its own accord, or is brought to its notice by the appellant or department within a period of three months from the date of the order.
7. Rectification which has the effect of enhancing an assessment or reducing a refund or input tax credit or otherwise increasing the liability of the other party can only be done after the party has been given an opportunity of being heard.
8. The Appellate Tribunal shall have power to regulate its own procedure.
9. It shall be guided by the principles of natural justice.
10. The Tribunal has same powers as are vested in a Civil Court for summoning or seeking the attendance of any person and examining him on oath or requiring the discovery and production of documents or receiving evidence on affidavits or setting aside any order of dismissal of any representation for default or any order passed by it ex parte etc.
11. Fee for filing appeal to Appellate Tribunal is one thousand rupees for every one lakh rupees of tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in the order appealed against, subject to maximum of twenty-five thousand rupees.

 

Pre-deposit requirement before Commissioner (Appeals) and Appellate Tribunal

1. For filing appeal to first Appellate Authority, ie, Commissioner (Appeals), a sum equal to ten percent of the disputed tax amount has to be deposited as pre-deposit.
2. In case of appeal to Tribunal a sum equal to twenty per cent, in addition to 10% deposited earlier with first Appellate Authority, of the disputed tax amount, is required to be paid.
3. Pre-deposit will be refunded with interest @ 6% where said amount becomes refundable on account of order in favour of assesse.

 

Appeal to High Court

1. Appeal against orders passed by the State Bench or Area Benches of the Appellate Tribunal shall lie to the High Court and the High Court may admit such appeal, if it is satisfied that the case involves a substantial question of law and it does not involve any issue relating to the "Place of Supply”.
2. This appeal in FORM GST APL-08 shall be filed within a period of one hundred and eighty days from the date on which the order appealed against is received by the aggrieved person
3. High Court can condone delay in filing appeal without any limit.
4. The appeal shall be heard by a Bench of not less than two Judges.

 

Appeal to Supreme Court

1. An appeal shall lie to the Supreme Court from any order passed by National Bench or Regional Benches of the Appellate Tribunal where one of the issues involved relates to the "Place of Supply”.
2. Appeal would also lie to Supreme Court from any judgment or order passed by the High Court in an appeal in any case which the High Court certifies to be a fit case for appeal to the Supreme Court.

Non-appealable decisions and orders

1. Board can fix monetary limits below which no departmental appeal would be filed with respective authorities. 
2. An order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer cannot be appealed against.
3. Appeal cannot be filed against an order pertaining to the seizure or retention of books of account, register and other documents.
4. Prosecution sanction order also cannot be appealed against. An order relating to conditions of recovery of outstanding tax in installment cannot be appealed against.

JOB WORK UNDER GST ACT

1. Job-work has been defined to mean any treatment or process undertaken by a person on goods belonging to another registered person.
2. Job worker is a person who does job work.
3. Job-work under GST law has been declared as 'supply of service, and taxed accordingly.
4. Procedure relating to job-work 
5. The registered person (Principal) has to declare the place of business of the job worker as his additional place of business except where the job worker is registered or where the principal is engaged in the supply of such goods as may be notified by the Commissioner.
6. Inputs, which include intermediary goods, or capital goods can be sent without paying GST to a job worker for job work and from there subsequently send to another job worker.
7. The principal can avail ITC on the inputs and capital goods sent for job work. However he is  not required to reverse the ITC availed on inputs or capital goods dispatched to job worker. Further goods can be got directly dispatched from supplier's premises to job worker's premises.
8. The goods have to be sent under the cover of Challan which shall contain the details specified Rule 55 of CGST Rules, 2017.
9. Said inputs, after completion of job work or otherwise are required to be brought back within  one year.
10. The capital goods, other than moulds and dies, jigs and fixtures, or tools, are required to be brought back within three years. 
11. Where the capital goods are sent directly to a job worker, the period of three years shall counted from the date of receipt of capital goods by the job worker.
12. The inputs or capital goods other than moulds and dies, jigs and fixtures, or tools, after completion of job work or otherwise, can be sent out, within one year and three years, respectively from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export. 
13. If the inputs/capital goods as above are not received back or not supplied/exported within the prescribed period, it would be deemed that goods were supplied by principal on date when these were sent for job-work. In such case Challan will be treated as invoice.
14. The details of challans in respect of goods dispatched to a job worker or received from a job worker during a tax period shall be included in FORM GSTR-1 furnished for that period · 
15. Any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered.
16. The responsibility for keeping proper accounts for the inputs or capital goods shall lie with principal.
17. Intermediate products are included in the definition of inputs. 

Transitional arrangement relating to Job-work

1. If inputs as such or after partial processing or semi-finished goods have been sent under the earlier laws to a job worker and returned under the GSI regime then no tax is liable to be paid if such goods are returned back within 6 months from the appointed day i.e. 1st July, 2017.
2. If the said goods are not returned within a period of 6 months, then the company has to reverse the input tax credit availed under the earlier law on such goods 
3. Excisable goods law, which are removed without payment of duty for any process not amounting to manufacture, irrespective of the fact whether manufacturer is registered or not under the earlier law, if returned after 6 months from the appointed day then ITC shall be liable to be recovered, else no tax will be paid.

ADVANCE RULING UNDER GST ACT

General

1. An application can be filed by an applicant to seck Advance Ruling in FORM GST ARA-1 stating the question on which the advance ruling is sought.
2. A fee of five thousand rupees has to be paid in the same manner as tax and other dues are paid.
3. Authority for Advance Ruling (AAR) shall comprise one member from CGST administration and one member from SGST/UTGST administration.
4. The Central Government and the State Government shall appoint an officer having the experience of not less than three years in the rank of Joint Commissioner as member of the Authority for Advance Ruling.
5. The Authority would first decide on as to whether application is to be admitted or not.
6. Final hearing would be given only after admission and decision pronounced.
7. Time limit is 90 days for completing entire exercise.
8. Advance Ruling can be sought for matters relating to,

• classification of any goods or services or both
• applicability of a notification issued under the provisions of this Act
• determination of time and value of supply of goods or services or both
• admissibility of input tax credit of tax paid or deemed to have been paid
• determination of the liability to pay tax on any goods or services or both; 
• whether applicant is required to be registered, and 
• whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 

Appeal against order of Advance Ruling Authority

1. There would be an Appellate Authority for Advance Ruling where appeal against ruling of Advance Ruling Authority can be filed. 
2. Time limit is 30 days from the date of communication of Ruling. This period can be extended by another 30 days . 
3. A fee of ten thousand rupees has to be paid for filing appeal. 
4. The appeal has to be filed in FORM GST ARA-2.
5. The Appellate Authority within 90 days has to pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to.
6. The parties to the appeal are to be given an opportunity of being heard. 
7. The orders can also be rectified on any mistake apparent on record.
8. However, no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input ta credit shall be made unless the applicant or the appellant has been given an opportunity of being heard.
9. Binding effect of Advance Ruling 
10. The advance ruling pronounced by the Authority or the Appellate Authority shall be binding only on the applicant who had sought it and on the concerned officer or the jurisdictional officer.
11. The findings of Advance Ruling are perpetual in nature provided the law, facts or circumstance supporting the original advance ruling have not changed.
12. An advance ruling can be declared ab initio void if the AAR or AAAR finds that it was obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts. 

CONFISCATION AND REDEMPTION FINE UNDER GST ACT

1. Confiscation proceedings are applicable only for Goods or Conveyances.
2. Goods supplied or received in contravention of GST law with intent to evade payment of tax are liable for confiscation.
3. Goods on which CST is payable and are not accounted for are also liable for confiscation.
4. Goods which are liable to tax under GST law and are supplied without having applied for registration are liable for confiscation.
5. If a taxable person contravenes any of the provisions of GST law with intent to evade payment of tax, then such goods can also be confiscated.
6. If a person uses any conveyance as a means of transport for carriage of goods in contravention of GST law, then such conveyance is liable for confiscation unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent if any, and the person in charge of the conveyance.
7. On confiscation of any goods or conveyance, an option shall be given to owner to pay fine in lieu of confiscation which is called Redemption Fine.
8. Redemption fine shall not exceed the market value of the goods confiscated, less the tax chargeble thereon.
9. In case where any conveyance is used for the carriage of the goods or passengers for hire the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon.
10. Redemption Fine shall be in addition to any tax, penalty and charges payable in respect of such goods or conveyance.
11. Title of confiscated goods or conveyances shall vest in the Government.
12. Disposal of confiscated goods or conveyance which are not required in any other proceedings shall be disposed off after giving three month notice and the sale proceeds will be deposited with the Government

PROSECUTION AND COMPOUNDING OF OFFENCE UNDER CST LAW

• Four punishments have been prescribed under CST law when a prosecution is launched by department.
• Details of punishment prescribed in GST Law are- 

1. in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees (exceeds Rs. 5 crores), with imprisonment for a term which may extend to five years and with fine;
2. in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees (between Rs. 2 crores and Rs. 5 crores), with imprisonment for a term which may extend to three years and with fine 
3. in the case of any other offence where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees (between Rs. 1 crore and Rs. 2 crores), with imprisonment for a term which may extend to one year and with fine 
4. in cases where he commits or abets the commission of an offence of falsification of records or submits false information or obstructs officials, he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both. 

• Thus, Minimum imprisonment is six months with fine while maximum is five years with fine.
• The case is to be tried by a Court not inferior to First Class Magistrate.
• Cognizance shall be taken only if complaint is filed with previous sanction of the Commissioner 

Offences by companies

1. Person who was in-charge of the company and was responsible for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly
2. Where consent or connivance to the offence or negligence on part of director, manager, secretary or other officer of the company is established they can also be liable to prosecution. 
3. In case of partnership firm or a limited Liability partnership or a Hindu Undivided Family or a trust, the partner or karta or managing trustee are also liable to prosecution.
4. It is on concerned person to prove that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence

Compounding of offences 

• GST law also provides for compounding of offenses in case the concerned person wishes to avoid litigation 
• Compunding of offence shall be allowed only after making payment of tax interest and penalty involved in such offences 
• Compounding of offence will not be available for second time offender of cognizable offences or where earlier evasion was of more than Rs one crore. 
• Compounding of offence will also not be available to person accused of committing an   offence under GST law which is also an offence under any other law for the time being in force. 
• A person who has been convicted for an offence under GST law or is accused of committing certain specified offences is also not eligible for compounding of offence.
• Procedure for compounding of offences 
• An application in FORM GST CPD-01 has to be filed by concerned person to the Commissioner for compounding of an offence. 
• The application can be filed either before or after the institution of prosecution.
• If satisfied, about true disclosure, Commissioner will pass an order in FORM GST CPD-02, allowing the application indicating the compounding amount and grant him immunity from prosecution.
• If not satisfied, he can reject application after affording an opportunity of hearing to applicant.
• The entire exercise of acceptance or rejection has to be completed within ninety days of the receipt of the application. 
• The application shall not be allowed unless the tax, interest and penalty liable to be paid have been paid in the case for which the application has been made.
• The compounding fee will be paid within 30 days the course of the compounding proceedings, concealed any material particulars or had given false evidence The immunity can be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence.

ARREST UNDER GST LAW

1. Arrest under GST law can be made for cognizable as well as non-cognizable offences. 
2. Cognizable offences and non-bailable offences are those where evasion exceeds Rs. 5 Crore involving specified offence of 

• supply of any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax;
• issuance of any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax; 
• availing input tax credit using such invoice or bill referred to above, and
• collecting any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due 

1. Non-Cognizable and bailable offences are those which are not cognizable and are committed when a person; 

• evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not covered under cognizable offence; 
• falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act;
• obstructs or prevents any officer in the discharge of his duties under this Act;
• acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder;
• receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder;
• tampers with or destroys any material evidence or documents;
• fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or
• attempts to commit, or abets the commission of any of the offences. 
• The arrest has to be authorized by Commissioner in writing.

Disposal of arrested person 

1. In the case of cognizable offences which are also non-bailable, arrested person has to be informed the ground of arrest and produced before a Magistrate within 24 hours. In case of non-cognizable bailable offences arrested person shall be admitted to bail by Deputy/Assistant Commissioner and on default of bail he shall be forwarded to custody of a Magistrate.
2. Deputy Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bail, have the same powers and be subject to the same provisions as an officer-in-charge of a police station. 

INSPECTION, SEARCH, SEIZURE AND SUMMON UNDER GST ACT

Power of inspection

1. Joint Commissioner or Additional Commissioner is empowered to issue authorization for inspection of any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place.
2. Inspection can be ordered if there is reasons to believe that:

• taxable person has suppressed any transaction relating to supply of goods or service or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of the rules made thereunder to evade tax under the GST Acts; and
• any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under the GST Acts.

Access to business premises

1. Joint Commissioner or Additional Commissioner can authorize any officer to access to any place of business of a registered person to inspect books of account, documents, computers, computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.

Power of search and seizure

1. Joint Commissioner or Additional Commissioner can authorise in writing any other officer to search and seize or may himself search and seize such goods, documents or books or things
2. They can issue authorization where there are reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place.
3. This "reason to believe" can be either in pursuant to an inspection carried out or otherwise.
4. Where it is not practical to seize goods, an order can be served on the owner or the custodian of the goods that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer.
5. The officers are empowered to seal or break open the door of any premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed.

Procedure for search

1. Authorisation in FORM GST INS-01 is to be issued by Joint Commissioner or Additional Commissioner authorising any other officer subordinate to him to conduct the inspection or search or as the case may be, seizure of goods, documents, books or things liable to confiscation
2. Where any goods, documents, books or things are liable for seizure, the proper officer or an authorised officer shall make an order of seizure in FORM GST INS-02.
3. The seized goods can be kept in the custody of owner or person from whom these were seized.
4. However, if it is not feasible to seize the goods, a prohibition order in FORM GST INS-03 will be issued to the effect that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of proper officer.
5. The officer seizing the goods, documents, books or things shall prepare an inventory of such goods or documents or books or things containing, inter aia, description, quantity or unit, make mark or model, where applicable, and get it signed by the person from whom such goods or documents or books or things are seized.
6. Documents etc. shall be retained only for so long as may be necessary for their examination and for any inquiry or proceedings under the GST Acts .
7. However, the person from whom goods have been seized is entitled to make copies take extracts therefrom in the presence of an authorised officer thereof.
8. However where proper officer is of opinion that taking such copies/extracts, would prejudicially affect the investigation, the same can be denied.
9. The documents/books/things etc., if not relied upon in the show cause notice shall be returned within period not exceeding 30 days from date of issuance of notice.
10. Dummy purchase of goods/services (Decoy Customer) can be authorized by Commissioner to check the evasion.
11. The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure under GST, shall apply to search and seizure subject to the modification that sub-section (5) of Section 163 of the said Code shall have effect as if for the word "Magistrate, wherever it occurs the word "Commissioner" were substituted.
12. Inspection of goods in movement is authorized and the person in-charge of conveyance has to produce prescribed documents for verification and allow inspection of goods.

Provisional release of goods

1. The seized goods can be released, on a provisional basis, upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax. interest and penalty payable.
2. Applicable tax shall include Central tax and State tax or Central tax and the Union Territory tax as the case may be and the cess, if any.
3. In case the person to whom the goods were released provisionally fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be exchanged and adjusted against the tax, interest and penalty and fine, if any, payable in respect of such goods.
4. Government can notify goods of hazardous nature and manner of their immediate disposal on seizure.

Return of seized goods

1. If no Show Cause Notice in respect of seized goods is given within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized. However, the period of six months may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months.

Summons

1. Superintendent is empowered to summon persons to give evidence and produce documents.
2. The inquiry to be conducted on summons has to be done in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908 (5of 1908) .
3. Every such inquiry shall be deemed to be a "judicial proceedings" within the meaning of Section 193 and Section 228 of the Indian Penal Code (45 of 1860).
4. Although statutory provisions are silent, presence of Advocate at a visible distance but beyond hearing range has been allowed.

ANTI-PROFITEERING UNDER GST ACT

1. GST law provides that any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices.
2. An authority may be constituted by the government to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. 
3. It is prescribed for constitution of a Screening Committee for the State and Standing Committee for the Centre.
4. The complaints will be first examined by Screening Committee and if satisfied forward same to The Standing Committee.
5. The standing Committee if satisfied will forward case to Director General Safe Guard who will cause detailed investigations by examining records and persons and then make suitable recommendation to the authority within three months of receipt of reference from Standing Committee.
6. The Authority, after due hearings, will pass suitable orders within three months, directing tax payers to reduce the price or return excess charged price or cancel registration or impose penalty.

PENALTY UNDER GST ACT

Mandatory penalty equal to tax evaded or Rs.10,000/-whichever is higher is imposable on taxable person in following cases:-
1. supply of goods or services or both without issue of any invoice or issues an incorrect or false invoice
2. issuance of any invoice or bill without supply of goods or services or both
3. collecting any amount as tax but failing to pay the same to the Government beyond a period of three months
4. collecting any tax in contravention of the provisions of this Act and failing to pay the same to the Government beyond a period of three months
5. failing to deduct the tax at source or deducting lesser tax or failing to pay deducted tax to Government account
6. failing to collect tax at source or collecting lesser tax or failing to pay collected tax to Government
7. taking or utilizing input tax credit without actual receipt of goods or services or both either fully or partially
8. fraudulently obtaining refund
9. taking or distributing input tax credit in contravention of Section 20, or the rules made thereunder
10. falsifying or substituting financial records or producing fake accounts or documents or furnishing false information or return with an intention to evade payment of tax
11. failing to obtain registration
12. furnishing any false information with regard to registration particulars
13. obstructing or preventing any officer in discharge of his duties
14. transporting any taxable goods without the cover of prescribed documents
15. suppressing turnover leading to evasion of tax
16. failing to keep, maintain or retain books of account and other documents in prescribed manner
17. failing to furnish information or documents called for by an officer or furnishing false information or documents
18. supplies, transporting or storing any goods which he has reasons to believe are liable to confiscation
19. issuing any invoice or document by using the registration number of another registered person
20. tampering with, or destroying any material evidence or document; and
21. disposing off or tampering with any goods that have been detained, seized, or attached.
Where supply of any goods or services or both has been made on which GST has not been paid or short paid or erroneously refunded, or where the input tax credit has been wrongly availed or utilised, then such person is liable for penalty of ten thousand rupees or ten per cent of the tax, whichever is higher
Where aforesaid act is for reason of fraud or any willful misstatement or suppression of facts to evade tax, then a penalty equal to ten thousand rupees or the tax due from such person, whichever is higher shall be imposable
Any other person who aids or abets evasion by acquiring transporting, removing depositing keeping concealing, supplying, purchasing or dealing with any goods which he knows or has reasons to believe are liable to confiscation shall be liable to a penalty which may extend to twenty-five thousand rupees
Any person who receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to belief are in contravention of GST law, shall be liable to a penalty which may extend to twenty five thousands rupees.
Any person who fails to appear before concerned officer when issued with a summon for appearance to give evidence or produce a document in an inquiry shall be liable to a penalty which may extend to twenty-five thousand rupees.
Any person who fails to issue invoice in accordance with the provisions of GST law or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to twenty-five thousand rupees.
Penalty for failure to furnish information return will be one hundred rupees for each day of the period during which the failure to furnish such return continues subject to maximum of 25000/-
Fine for failure to furnish statistics under Section 151 may extend to ten thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues subject to a maximum limit of twenty five thousand rupees.
General penalty for offences where penalty not specified would be maximum twenty-five thousand rupees.

No penalty

Minor breaches of tax regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence, shall not attract any penalty.

RECOVERY PROCEEDINGS AND ITS PROCEDURE UNDER GST ACT

RECOVERY PROCEEDINGS

• The adjudication order passed by proper officer in pursuant to demand SCN is to be treated as recovery notice
• The amount has to be paid within three months or extended period as allowed, from the date of service of such order failing which recovery proceedings shall be initiated.
• The amount payable by a taxable person or any other person on account of tax, interest or penalty which he is liable to pay to the Government shall be a first charge on the property of such taxable person or such person.
• Provisional attachment, including that of Bank account can be ordered to protect revenue in certain cases even during pendency of adjudication and assessment.

Procedure of Recovery     

• Recovery by deduction from any money owed to defaulter by Central or State/UT Government or a local authority or companies owned by them. For this purpose, the proper officer shall issue FORM GST DRC-09
• Goods under the control of proper officer can be sold by auction including e-auction by issuing a notice of 15 days in FORM GST DRC-10. Perishable or hazardous goods can be auctioned immediately. However, if defaulter pays the amount of recovery along with expenses, if any incurred, before notice of auction, the goods will be released to him.
• Recovery can also be made from a third person from whom money is due or may become due to defaulter or who holds or may subsequently hold money for or on account of the defaulter. For this purpose, a notice in FORM GST DRC-13 is to be issued.
• Where any amount is payable to the defaulter in the execution of a decree of a civil court, the Court can be requested to attach decree and credit the amount to Government.
• The due amount can be recovered by sale of movable or immovable property belonging to the defaulter by attaching the same. A copy of attachment order will be sent to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on such property.
• The debts and shares, etc. of defaulter can be attached.
• Property in custody of courts or Public Officer can be attached.
• Attachment of interest in partnership can be resorted to.
• The amount can be recovered as arrear of Land Revenue by sending a certificate to the Collector or Deputy Commissioner of the district in FORM GST DRC-18
• Recovery can be made through court as if default amount is fine imposed by Court under Cr.P.C. For this purpose, an application in FORM GST DRC-19 will be filed before the appropriate Magistrate.
• The amount can be recovered from surety.
• Where the defaulter company is under liquidation, the liquidator will be asked for the recovery of amount in FORMGST DRC-24.
• Where amount is realized from the sale of goods, movable or immovable property, the realized amount will first, be appropriated against the administrative cost of the recovery process; next against the amount to be recovered, next against any other amount under GST law and balance be paid to the defaulter.
• Recovery in instalments
• Commissioner can allow payment with interest by defaulter in monthly installments not exceeding 24 installments.
• In case of default in payment of any one installment on its due date, the whole outstanding balance payable on such date shall become due.
• For seeking installment facility, taxable person can file application electronically in FORM GST DRC-20.
• The installment facility will not be allowed if:-
• The taxable person has already defaulted on the payment of any amount under GST law and recovery process is already undergoing.
• The taxable person has not been allowed to make payment in installments in the preceding financial year under GST law, and the amount for which instalment facility is sought is less than twenty-five thousand rupees.

TAX COLLECTED BUT NOT PAID TO GOVERNMENT UNDER GST ACT

• Every person who has collected any amount as representing the GST and has not paid same to the Government is required to pay said amount irrespective of whether the supplies in respect of which such amount was collected are taxable or not.
• In case of failure, proper officer an sue a SCN to him proposing recovery and imposition of penalty.
• SCN is to be decided within one year and order issued in FORM GST DRC-07.
• This order shall be treated as Recovery Notice
• The person who has borne the incidence of the amount, can claim refund.

DEMAND & ADJUDICATION UNDER GST ACT

1. Show Cause Notice can be issued by proper officer to a registered person where it appears to him that tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized, asking him to show cause as to why the said tax be not demanded and recovered from him.
2. Limitation period for issue of Show Cause Notice (SCN)
3. The normal period for issuing demand Show Cause Notice is 2 years and 9 months from the date of furnishing annual return for the financial year to which the demand pertains A summary of demand has to be furnished electronically in Form GST DRC 01 simultaneously
4. The period for issuing demand SCN is extendable if the reason or its issuance is fraud or any willful misstatement or suppression of facts to evade tax.
5. The extended period for issuing demand SCN in case of fraud etc. is 4 years and 6 months from the date of furnishing annual return for the financial year to which the demand pertains.
6. Period of stay on issuance of SCN ordered by Court/Tribunal to be excluded for determining limitation.
7. Suppression means non-declaration of facts or information in the return, statement, report or any other document or failure to furnish any information on being asked for, in writing, by the proper officer.
8. Dispensation of SCN
9. Once a SCN has been issued, whether for normal period or extended period, for subsequent demand period, a statement showing details of amount demanded can be served if grounds of demand are same.
10. In a normal period demand case, where assessee on the basis of his own ascertainment or ascertainment of the proper officer pays the tax short levied, etc along with interest and informs the proper officer in writing, then no SCN will be issued.
11. In an extended period demand case, where assessee on the basis of his own ascertainment or ascertainment of the proper officer pays the tax short levied, etc. along with interest with15% of the amount as penalty and informs the proper officer in writing, then no SCN will be issued.

Adjudication of SCN - Procedure for

1. The assessee will reply/make representation against SCN in FORM GST DRC 06 within the prescribed time or time as extended.
2. He has a right of being heard personally or through an authorized representative
3. After considering explanation/reply/representation of assessee to SCN, the proper officer shall determine tax payable with interest and penalty.
4. For normal demand period case, the penalty is 10% of demanded amount or Rs 1000 whichever is higher.
5. For extended period demand case, the penalty is 100% of the amount demanded or Rs.10000 whichever is higher.
6. For normal demand period case, the adjudication has to be done within three years from due date of furnishing annual return for the financial year to which the tax demand pertains.
7. : For extended period case, the time for concluding adjudication proceedings is five years from due date of furnishing annual return for the financial year to which the tax demand pertains.
8. A summary of the order issued 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.
9. This order shall be treated as Recovery Notice.
10. Cross empowerment between CGST and SGST/UTGST officers has been done so as to ensure that if a proper officer of one Act (say CGST) passes an order with respect to a transaction, he will also act as the proper officer of SGST for the same transaction and issue the order with respect to the CGST as well as the SGST/UTGST component of the same transaction.
11. Dispensation of Adjudication proceedings and waiver of penalty provisions
12. In a normal period demand case if assessee admits liability and pays demanded amount with interest within 30 days of SCN, then the case would be concluded without resorting to adjudication proceedings and without imposing penalty.
13. In an extended period demand case, if assessee admits liability and pays demanded amount with interest and a penalty of 25% of tax evaded within 30 days of CN, then the case would be concluded without resorting to adjudication proceedings and without imposing penalty.
14. For this purpose, the assessee shall intimate the proper officer of such payment in FORM GST DRC-03  and the proper officer issue an order if GORM GST DRC-05 concluding the proceeding in respect of the said notice.

Conclusion of proceedings

1. When tax with interest and penalty (only in case of fraud etc) is paid prior to issuance of SCN.
2. When tax with interest and penalty (only when SCN is under extended period) is paid within 30 days of issuance of SCN.
3. When tax with interest and penalty or reduced penalty of 50% in extended period demand case is paid within 30 days of issuance of Adjudication order.

Demand/Adjudication- Misc. provisions

1.  
2. Where in appeal it is decided that extended period of demand is not held invocable in appeal demand shall be determined for normal period.
3. Where any order is required to be issued on the direction of the Appellate Authority or Appellate Tribunal or a court, adjudicating authority shall issue such order within two years.
4. An opportunity of hearing shall be granted by adjudicating authority. Adjournments can be granted on written request, but not for more than three times.
5. The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice.
6. Where the Appellate Authority or Appellate Tribunal or court modifies the amount of tax determined by the proper officer, the amount of interest and penalty shall stand modified accordingly.
7. The interest on the tax short paid or not paid shall be payable whether or not specified in the order determining the tax liability.
8. The adjudication proceedings shall be deemed to have been concluded, if the order is not issued within three years or five years as the case may be. However, where on same issue in some other proceedings, department is in appeal as the issue has been decided against it, the period till finalization of proceedings shall be excluded.
9. Where any amount of self-assessed tax in accordance with a return furnished under Section 39 remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of Section 79.

LIABILITY TO PAY IN CERTAIN CASES UNDER GST ACT

1. Liability case of transfer of business. -When a taxable person transfers his business in whole or in part, the taxable person and the person to whom the business is so transferred shall jointly be liable to pay the tax, interest or any penalty due from the taxable person upto the time of such transfer.
2. Liability of agent and principal.-Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall be jointly liable to pay the tax on such goods.
3. Liability in case of amalgamation or merger of companies.-When two or more companies are amalgamated or merged and the order is to be effective from an earlier date and any two or more of such companies have supplied or received any goods or services or both to or from each other then such transactions of supply and receipt shall be included in the turnover of the respective companies for payment of tax. Such companies shall be treated as distinct companies for the prior period.
4. Liability in case of company in liquidation.- When any company is being wound up person appointed as receiver of any assets of such company, is required to inform Commissioner of such appointment within thirty days.
5. The Commissioner is required to notify within three months from the date of receipt of intimation, the amount which would be sufficient to provide for any tax and other dues of the company.
6. Where dues cannot be recovered from such company then the same are to be recovered from its directors.
7. Liability of directors of private company- Where any tax, interest or penalty due from a private company cannot be recovered, then, every person who was a director of the private company during such period shall be liable for the payment of such dues.
8. Liability of partners of firm to pay tax- Where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
9. Liability of guardians, trustees, etc.- Where the business is carried on by any guardian, trustee or agent of a minor or other incapacitated person then tax, interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent.
10. Lability of Court of Wards, etc.- Where the estate or any portion of the estate of a taxable person in respect of which any tax, interest or penalty is payable under this Act is under the control of the Court of Wards, the Administrator General, the Official Trustee or any receiver appointed by or under any order of a court, the tax, interest or penalty shall be levied upon and be recoverable from such Court of Wards, Administrator General, Official Trustee, receiver.
11. Special provisions reganding liabity to pay tax, interest or penalty in certain cases- Where a person, liable to pay tax and other dues dies, then his legal representative or any other person shall be liable to pay such dues.
12. Where a taxable person is a Hindu Undivided Family then, each member or group of members shall be jointly and severally liable to pay such dues.
13. Where a taxable person is a firm, and the firm is dissolved, then, every partner shall be jointly and severally liable to pay such dues.
14. Where a taxable person is the guardian of a ward on whose behalf the business is carried on by the guardian or who is a trustee and carries on the business under a trust for a beneficiary then if the guardianship or trust is terminated, the ward or the beneficiary shall be liable to pay such dues. 
15. Liability in other cases.-Where a taxable person is a firm or an association of persons or a Hindu Undivided Family and such firm, association or family has discontinued business, for the dues up to the date of such discontinuance, every person who was a partner of such firm, a member of such association or family, shall be jointly and severally, liable for payment of tax and other dues payable by such firm, association or family, whether such dues have been determined prior to or after such discontinuance.
16. Where a change has occurred in the constitution of a firm or an association of persons, the partners of the firm or members of association, as it existed before and as it exists after the reconstitution, shall be jointly and severally liable to pay all the dues for any period before its reconstitution.

GST PRACTITIONERS

1. A registered person may authorise an approved GST practitioner to furnish information, on his behalf, to the Government.
2. A goods and services tax practitioner enrolled in any State or Union Territory shall be treated as enrolled in the other States/Union Territories.
3. A person to be eligible to be nominated as GST practitioner should possess required qualification/experience.
4. The enrolment once done remains valid till it is cancelled.
5. However, a person enrolled as a Goods and Services Tax practitioner will be required to passes examination conducted by the Commissioner on the recommendations of the Council.
6. A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered person:

              (a) furnish details of outward and inward supplies
              (b) furnish monthly, quarterly, annual or final return;
              (c) make deposit for credit into the electronic cash ledger
              (d) file a claim for refund; and
              (e) file an application for amendment or cancellation of registration

A GST practitioner can also appear as authorised representative before any officer of the department, Appellate Authority or Appellate Tribunal.

REFUND UNDER GOODS AND SERVICES TAX (GST) ACT, 2017

Law and Procedure

1. A simplified, time bound and technology driven refund procedure with minimal human interface between the taxpayer and tax authorities has been devised under GST law.
2. A refund claim under GST law may arise due to calculation mistake leading to excess payment exports/deemed export, SEZ supply, judgment of appellate authority or Court, finalization of provisional assessment etc. 
3. Application in FORM GST RFD-01 is required to be filed for claiming refund along with requisite documents.
4. In case of refund of balance of Electronic Cash Register, no application is required and claim can be made through the return furnished.
5. Time limit for filing refund claim is two years from relevant date.
6. In case of export of goods, application for refund shall be filed only after the export manifest or an export report, as the case may be, is delivered under Section 41 of the Customs Act.
7. In respect of supplies to a SEZ unit or developer, the application for refund shall be filed by the supplier of goods after such goods/services have been admitted /received in full n SEZ.
8. In respect of supplies regarded as deemed exports, the application shall be filed by the respondent of deemed export supplies.
9. Acknowledgement of Refund application by the department in prescribed format is mandatory within prescribed time.
10. Provisional refund of 90 per cent has to be granted within 7 days from the date of acknowledgement provided the person claiming refund has not been prosecuted for any offence under GST Law or earlier subsumed laws where the amount of tax evaded exceeds two hundred  and fifty lakh rupees during last five years.
11. Where amount of tax has been recovered from the recipient, it shall be deemed that the incidence of tax has been passed on to the ultimate consumer. In such a case refund, if due, shall be credited to Consumer Welfare Fund.
12. Refund of ITC on account of export or supplies to SE2, will be in terms of a formulae prescribed.
13. A separate formulae has been prescribed for refund arising on account of Inverted duty structure.
14. Interest @ 6% would be available to assessee for delayed refund i.e beyond 60 days from, the date of acknowledgement.

 

Relevant date for computing 2 years period

1. In the case of export of goods by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India. In case of export by land, the date on which such goods pass the frontier. If the goods are exported by post, the date of despatch of goods by the Post Office concerned to a place outside India.
2. In the case of export of services where the supply of services had been completed prior to the receipt of payment, the date of receipt of payment in convertible foreign exchange. In case where payment for the services had been received in advance prior to the date of issue of the invoice, the date of issue of invoices.
3. In the case of deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished.
4. In case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction.
5. In the case of refund of unutilised input tax credit, the end of the financial year in which such claim for refund arises.
6. In the case where tax is paid provisionally, the date of adjustment of tax after the final assessment
7. In the case of a person, other than the supplier, the date of receipt of goods or services or both by such person.
8. In any other case, the date of payment of tax.

Documents to be attached with refund claim

1. Copy of the order passed by the proper officer or an appellate authority or appellate tribunal or court resulting in refund.
2. In the case of export of goods, a statement containing the number and date of shipping bills/ bills of export and invoices.
3. In the case of export of services, a statement containing the number and date of invoices/BRC/FIRC.
4. In the case of supply of goods to SEZ a statement containing the number and date of invoices.
5. In the case of supply of services to SEZ, a statement containing the number and date of invoices and the details of payment.
6. A declaration to the effect that the SEZ unit or developer has not availed of the input tax credit of the tax paid by the supplier of goods or services or both.
7. In the case of deemed export, a statement containing the number and date of invoices along with such other evidence as may be notified.
8. In the case where refund is arising due to inverted tax structure, a statement in Annex 1 of FORM GST RFD-01.
9. A copy of the order in a case where the refund arises on account of finalisation of provisional assessment.
10. A statement showing the details of transactions considered as intra-State supply but which is subsequently held to be inter-State supply.
11. A statement showing the details of the amount of claim on account of excess payment of tax.
12. A declaration to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed does not exceeds two lakh rupees. This declaration is not required in cases covered under Section 54(8) of CGST/SGST Act.
13. A certificate in Annexure 2 of FORM GST RFD-01 issued by a Chartered Accountant or a Cost Accountant to the effect that the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed of exceeds two lakh rupees. This certificate is not required in cases covered under Section 54(8) of CGST/SGST Act.