NOTICE U/S 74(5) FOR THE CURRENT F.Y., Goods and Services Tax - GST

[Renju Joy]

I have missed to show reverse charge on inward supplies in GSTR 3B for the month of June 2019.

Now I have received a notice dated 29.02.2020 u/s 74(5) for this non payment. Am I able to show this in the GSTR 3B of Feb, which is pending to be filed or should I pay the tax along with penalty and interest through DRC-03.

Thanks & Regards.

Posts / Replies

[CA Seshukumar]

Honerable High Court has cleared mentoned that it is just a notice and whch is upto the petitioner to give weightage or not. if not given then Department may issue actual notice i.e SCN under sec.74(1). hence if any assessee pays tax upon being served any notice under 74(5) will not have any serious actions that are envisaged under Sec.17(5).

[KASTURI SETHI]

I agree with Sh.Seshu Kumar CA. Correctly understood and expressed.

[KASTURI SETHI]

In continuation of above , but if paid under Section 74 (5) ITC will not be allowed.

[Ganesh Pawle]

Buying dealer has got valid tax invoice, e way bills, transport receipts, goods actually received. All payments including tax has also been paid by account payee cheques. The supplier has also filed GSTR 3B. Buyer is not involved in any kind of fraud in the transaction. Department has cancelled the registration of supplier retrospectively and issued notice under section 73(5) and 74(5). What is the remedy available to the buyer? and what are the case laws to defend?.

[SHARAD ANADA]

Notification No. 79 /2020 – Central Tax New Delhi, the 15th October, 2020

In the said rules, in rule 142, in sub-rule (1A), (i) for the words “proper officer shall”, the words “proper officer may” shall be substituted;

(ii) for the words “shall communicate”, the word “communicate” shall be substituted.

So now it is not mendatory for proper officer to issue Notice in Form DRC 01 before show-cause notice.