As per the Finance Act 2021, the government is empowered to send its recovery officials to a taxpayer's premises to collect GST without notice, if the tax liability shown in the requisite form of the taxpayer is less than what invoices, mentioned in the outward supply form, should draw.
The relevant provision in the Finance Act, 2021, will come into effect from January 1, 2022. Subsequent to the notification issued by the government, taxpayers are worried whether the law is draconian in nature and will empower the government to make surprise recovery visits.
The Central Board of Indirect Tax and Customs via their official Twitter handle has issued a clarification with regard to the same. Relevant screenshots of the same have been shared below:
CAclubindia
