Question 8 - What are the conditions which must be fulfilled before application for settlement can be accepted? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 8. What are the conditions which must be fulfilled before application for settlement can be accepted? Ans. As per section 15 of the IGST Act, the following conditions must be fulfilled before an application for settlement of a case can be accepted: (a) the applicant has furnished the return(s), which he is or was required to furnish under the IGST Act or this requirement has been waived by the Settlement Commission after recording the reasons that it was satisfied that certain valid circumstances existed for not filing the return(s); (b) the applicant has received a show cause notice for demand of tax or has received an order confirming the demand of tax issued by the IGST officer and the same is pending before the First Appellate Authority; (c) the additional amount of tax accepted by the applicant in his application exceeds five lakh rupees; and (d) the applicant has paid the additional amount of tax accepted by him along with the interest due thereon under section 36 of the CGST Act.