Recovery proceeding u/s 79 of cgst act

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Sabita Sahoo (Querist)

19 April 2020 If a taxpayer files his GSTR1 for a tax period but fails to file his GSTR3B ,can sec 79 be invoked after issuance of GSTR3A as per M.P highcourt decision in case of kabeer reality pvt.ltd or after non compliance of sec 46, sec 62 to be initiated first and then sec 79 to be undertaken by the department? What would be the case if taxpayer is a regular defaulter of GSTR3B?

Sivakanth Badida

Sivakanth Badida (Expert)

20 April 2020 The procedure as per law is, 1. Notice under 42 followed by 2. assessment under 62, and then 3. recovery under 79 keeping in mind the time limit set under 78 However in kabeer reality the taxpayer being a serious defaulter went against him, as the self assessment would take place only after a return u/s 39 3B is filed, in this case no real assessment has taken place as no order has been passed under 62 and moreover the department has sent a communication asking him to file 3B which could be taken as notice under section 42. He could have gotten away with it if it wasn't for his negative track record right from the service tax regime.

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