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TMI BlogAn In depth Analysis of section 62 of the CGST Act 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... An In depth Analysis of section 62 of the CGST Act 2017 X X X X Extracts X X X X X X X X Extracts X X X X ..... ld formation is able to appreciate and use this Section in EXCEPTIONAL circumstances, nor the Trade and Industry has made any attempt on representation to CBIC/GST Council to set right the issues connected therewith. Hence, an attempt is made to create awareness amongst taxpayers to handle this section sensitively. 2. Sub section 1 empowers the proper officer to override the principles of natural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justice and to pass the BEST JUDGEMENT ASSESSMENT ORDER when the taxpayer fails to file the GSTR Return, even after issuance of a Notice under Section 46. The lesson to the taxpayer is not to delay the filing of the GST Returns and to always file in time to avoid the troublesome formalities, as once BEST JUDGEMENT ORDER is passed and the taxpayer is not in a position to file the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return within 120 days of BEST JUDGEMENT ORDER, as per the present system, HIGH COURT is the only remedy to solve the issue. 3. Sub section 2 granted a time of 30 days (during the period from 01/07/2017 to 30/09/2023) to furnish the GSTR which was enhanced to 60 days with effect from 01/10/2023. The newly added proviso effective from 01/10/2023 provides a further grace period of 60 days (Total 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20) to file the GSTR with additional LATE FEE of Rs.100 per day for the delay beyond 60 days to sort out the issue. 4. The question which is not answered here is what happens to a taxpayer who due to facts and circumstances of the case is not in a position to file the required GSTR within 120 days from the date of passing of the BEST JUDGEMENT ORDER. 5. Notification Number 06/2023 Central Tax da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 31/03/2023 provided for relief in connected cases where the best judgement order was passed before 28/02/2023 and the GSTR was filed by 30/06/2023. The time limit of 30/06/2023 was extended to 31/08/2023 vide notification number 24/2023 central Tax dated 17/07/2023. Thus, cases where order was passed before 28/02/2023 and GSTR was filed on or before 31/08/2023 are safe as the said assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders shall be deemed to be withdrawn. However, there is no clarity on cases where orders are passed on or after 01/03/2023 and/or GSTR is filed after 01/09/2023. This position would be applicable for cases pertaining up to 30/09/2023. 6. As per the present position, the proper officer shall not withdraw the BEST JUDGEMENT ASSESSMENT ORDER in many cases which are not covered under Notification 06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2023 or under Section 62(2) whereas the taxpayer, while filing the GSTR has to pay all applicable taxes, interest, penalty as well as late fee. Amount determined under best judgement would be payable as per records and 10% of the amount is required to be paid as pre deposit for filing the First Appeal. 7. In case the first appeal is not filed within three months from the date of the order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chances of appeal being rejected are HIGH as the First Appellate Authority is normally not condoning any delay even in genuine cases for the period which is within their powers. 8. In order to avoid the difficulties discussed above, the taxpayer must file the GSTR in time and in cases, where due to circumstances beyond the control of the taxpayer, in case any best judgement order is passed, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GSTR should be filed within 30 days from the date of the order and in NO case later than 120 Days. 9. The next question is what happens when GSTR is not filed within 120 days from the date of the Assessment Order. While the Appellate Authority may straight away reject the appeal solely on the ground of limitation, would it be possible to get any remedy by the taxpayer. 10. The High Courts have c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome to the rescue of the taxpayers and are remanding the cases to the authorities to consider the cases on merits and after ensuring levy of applicable taxes, interest, penalty and late fees, the original assessment order may be withdrawn. 11. The Madras High Court in the case of HELMET HOUSE Versus The Deputy State Tax Officer has held on 02/08/2024 that in the light of the amendment to Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 62(2) on 01/10/2023, the delay in filing GSTR is to be condoned and the order is to be deemed to have been withdrawn. 12. The Madras High Court has passed orders in favour of taxpayer in Best Judgement Order case in SMA TEX Versus Proper Officer on 01/07/2024 wherein it was held that the best judgement assessment order was liable to be set aside. 13. Persons who are entrusted with the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsibility to file the GSTR Returns may ensure on time submission of returns and whenever this is missed, to file the GSTR as quickly as possible to avoid the passing of order under section 62. However, in case order under section 62 is inevitable, file the GSTR within 120 days of the order so as to ensure that the order is withdrawn. If this final deadline is also missed, the damage would be so h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh which is UNDESIRABLE.
14. Provisions relating to cancellation of Registration, Best Judgement Assessment Order etc. are incorporated in Law to deal with exceptional cases where the taxpayer has an intention to evade the payment of GST. However, this should not be used as a tool to improve the REVENUE. X X X X Extracts X X X X X X X X Extracts X X X X
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