COTTON. WRONG PAYMENT OF TAX UNDER FCM.

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..... COTTON. WRONG PAYMENT OF TAX UNDER FCM.
Query (Issue) Started By: - Sadanand Bulbule Dated:- 1-3-2025 Last Reply Date:- 1-3-2025 Goods and Services Tax - GST
Got 4 Replies
GST
Dear experts In terms of Notification No.43/2017-CTR dated 14/11/2017, a registered person is liable to pay tax under RMC on purchase of "Raw cotton from agriculturist" under Section 9[3] of the CGST Act. Howe .....

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..... ver a taxpayer under the influence of misguidance, has paid tax under FCM on supply of such Raw cotton purchased from agriculturists and it is manifest in the books of account and financial statements. But the Adjudicating Authority has again levied tax/interest/penalty by way of a consolidated order for five years under Section 74 on such purchase under RMC without considering the actual of paym .....

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..... ent of tax under FCM by the taxpayer. Although there is procedural lapse, what are adverse revenue implications? And what is the remedy? An appeal under Section 107 or a rectification under Section 161? Plz clarify. Reply By Sadanand Bulbule: The Reply: Plz read it as " RCM" instead of RMC. Reply By KASTURI SETHI: The Reply: Sh.Sadanand Bulbule Ji,             .....

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.....            Sir,  In my opinion, the department will not accept application for rectification of error under Section 161 of CGST Act.                              The better option is filing of appeal under Section 107. The issue can be contested on the ground that tax cannot be charged tw .....

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..... ice for the same transaction. (Emphasis is laid on  'same transaction'.                              Recently about four months ago I have read judgement  on this issue in favour of the taxpayer.                 Reply By Sadanand Bulbule: The Reply: Yes Sir. But .....

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..... the taxpayer has to deposit 10% of the disputed tax amount to file appeal under Section 107, which is the burning issue. Reply By Sadanand Bulbule: The Reply: Sirji The situation is like black ice.
Discussion Forum - Knowledge Sharing .....

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