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INTRODUCTION: HOW A SITUATION FOR DEMAND ARISES

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..... to demand and determination of the amount of tax short-paid or not paid, amount of wrongly availed/utilized input tax credit. Any amount erroneously refunded shall also result in demand of such erroneously refunded amount. 1.3. The provisions of CGST Act, 2017 and CGST Rules, 2017, relevant to demand and determination of tax short paid or not paid, Input Tax Credit wrongly availed or utilized or amount erroneously refunded, are as under - Sr. No. Section / Rules Provisions pertaining to 1. Section 73 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful-misstatement or suppression of facts 2. Section 74 Determination of ta .....

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..... The person liable to pay tax is commonly referred as 'taxpayer'. 1.6 Under the GST law, self-assessment of the tax payable on supply of goods or services or both is provided under Section 59 of the CGST Act, 2017. Periodical returns, as specified under Section 39 of the CGST Act, 2017 has to be furnished by the taxable person for each tax period by the taxpayer, declaring the details of supplies made, its value, tax payable, input tax credit availed, tax paid, etc. The returns filed by the taxpayer depict the compliance of tax payment for the relevant period. 1.7 Under self-assessment, there is a possibility of short-payment or non-payment of tax or incorrect availment of input tax credit by the taxpayer on account of various factors like .....

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..... ed short payment or non-payment of tax or wrongly availed/ utilized input tax credit or erroneous refund can be detected by carrying out verification of the correctness of self-assessed tax, by conducting scrutiny of returns or during the course of Audit conducted on the records of the taxpayer or during enquiry or investigation initiated against the taxpayer. 1.9 CGST Act, 2017, authorizes the Proper Officer to demand and determine the following amounts: (i) A tax which is not paid (Section 73 and Section 74) (ii) A tax which is short paid (Section 73 and Section 74) (iii) A tax which is erroneously refunded (Section 73 and Section 74) (iv) Wrongly availed Input Tax Credit (Section 73 and Section 74) (v) Wrongly utilized Input T .....

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