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ASMT 10 Demanding Tax Interest Liability

Others 426 views 2 replies

MAYUR MINAJGI

54 Points Posted on 15 December 2022

Turnover declared in 3B is lesser as compared to R1
department is asking to pay difference turnover through DRC 03 f y October 2017 Rs 1,88,000
and department also demanding Interest from October 17
IS THIS JUSTIFIED
pls reply

Replies (2)

CA Bikram Shaw

Service

37 Points Posted on 15 December 2022

As per Notification No. 39/2021 - Central Tax , Dated 21st Dec 2021,and also as per explanation of Section 75(12) of CGST Act.

Self Assessment Tax include tax liability declare in GSTR 1 (Section 37) and not in GSTR 3B (Section 39).

Therefore Department can demand for tax and interest also.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 16 December 2022

Yes As per Explanation under Section 75(12) , department can do so.
But as this explanation was Inserted by Finance Act 2021, clause 114 & get effective from 01/01/2022. so the same is applicable on the returns filed from 01/01/22 onwards. (It's not effective retrospective)
So in your case the same is not applicable.

Note :
Moreover as per the instruction No. 01/2022 GST dtd 0701/2022, if you can able to justify the difference or can explain the difference, the issued order can drop.