9911796707
TMI BlogClarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax creditX X X X Extracts X X X X X X X X Extracts X X X X ..... Kind attention is invited to the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) relating to the recovery of arrears of central excise duty /service tax and CENVAT credit thereof, CENVAT credit carried forward erroneously and related interest, penalty or late fee payable arising as a result of the proceedings of assessment, adjudication, appeal etc. initiated before, on or after the appointed date under the provisions of the existing law. In this regard, representations have been received seeking clarification on the procedure for recovery of such arrears in the GST regime. 2. The issues have been examined and to ensure uniformity in the implementation of the provisions of the law acro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overy of arrears of central excise duty and service tax: a. Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable, the same shall, unless recovered under the existing law,be recovered as an arrear of tax under the CGST Act [Section 142(8)(a) of the CGST Act refers]. b. If due to any proceedings of appeal, review or reference relating to output duty or tax liability initiated,whether before, on or after the appointed day, under the existing law, any amount of output duty or tax becomes recoverable, the same shall, unless recovered under the existing law,be recovered as an arrear of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrongly availed CENVAT credit thereof under the existing lawarising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as central tax liability to be paid through the utilization of amounts available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part II of the Electronic Liability Register (FORM GST PMT-01). 4.2 Recovery of interest, penalty and late fee payable: (a) The arrears of interest, penalty and late fee in relation to CENVAT credit wrongly carried forward, arising out of any of the situations discussed in para 3 above, shall be recovered as interest, penalty and late fee of central tax to be pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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