Liability Disclosed in Annual Return but not paid, Goods and Services Tax - GST

[Mihir Modak]

If liability is disclosed in annual return GSTR-9/9C but not paid. Whether limitation period as per section 73/74 are applicable in such cases for recovery of tax dues?

 

Posts / Replies

[Ganeshan Kalyani]

Refer Sec 49(8) it says at clause (a) that the taxpayer shall pay tax which is due in return of previous periods. It mentions at (c) any other amount payable under this Act or the rules made thereunder including the demand determined under section 73 or section 74.

In my view, the above provision overrides sec 73 and 74 as it mentions that tax shall be paid that is due for past period including tax determined u/s 73 and 74.

[KASTURI SETHI]

 (i)   In this scenario, Section 79 comes into play. Under Section 79 of CGST Act Govt. has vast powers to recover Govt. dues which are  declared /admitted in GST returns.

(ii) When any Govt. dues are admitted in GST Returns, the registered person is statutorily bound to deposit Govt. dues on its own or the same will be recovered by the Proper Officer as per the procedure laid down under Section 79 of CGST Act, 2017 read with Rules 143, 144, 145, 146, 147, 155 and 156 of CGST Rules, 2017 . Such admitted and declared Govt. dues can be recovered without any time limit. 

 (iii) Limitation period laid down in Section 73 and 74 is not applicable to the instant case.

  (iv) Section 79 corresponds to Section 87 of erstwhile  Finance Act, 1994 (Service Tax law)