Quick Summary
Tax authorities issuing show-cause notices will have to complete all enforcement and consequential action against the assessee against whom GST evasion was detected, the GST Council has said. Under the GST regime, states administer and control 90 percent of the assessees with an annual turnover of up to Rs 1.5 crore. Assessees with an annual turnover of over Rs 1.5 crore are administered by the Centre and state tax authorities in 50:50 ratio on computer-based random sampling. In order t
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FAQ :
The GST Council has clarified that tax authorities must complete all enforcement and consequential actions after issuing a show-cause notice (SCN) following an investigation.
The clarification was needed to resolve jurisdictional issues, as varied practices were being followed regarding who issues SCNs and completes subsequent actions when investigations are initiated by one tax authority and the taxpayer is administered by another.
The authority that initiates the enforcement action, whether central or state, will be responsible for completing all consequential actions like appeal, review, and adjudication.
Yes, a taxpayer can be subject to enforcement action by both central and state authorities, even if they are primarily assigned to one.
Refunds in such cases may only be granted by the jurisdictional tax authority that administers the taxpayer.
Further or recurring SCNs are issued by the actual jurisdictional authorities responsible for assessing the taxpayer's returns, as they have access to the relevant records.
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