CBIC extends GST dues recovery date

[AshaKanta Sharma]

The Goods and Services Tax (GST) Council has extended the deadline for tax officials to demand and recover dues from businesses for 2018-19 and 2019-20. For FY19 dues, the deadline is now until the end of April 2024, while for FY20 dues, it has been extended to the end of August next year. The prescribed time limit for recovering dues is three years from the date of filing GST annual returns. This extension is beneficial for tax officials, enabling them to take appropriate action in instances of tax discrepancies, such as underpayment of taxes, improper use of tax credits, or incorrect tax refunds. However, this time limit does not extend to cases involving fraud, wilful misstatement, or suppression of facts. Tax experts believe the extension is a response to accumulating cases with the adjudicating authority and concerns about businesses not having adequate time to provide requested information.

Notification No. 56/2023 - Dated: 28-12-2023 - CGST