Section 74 of the CGST Act 2017 deals with the determination of tax discrepancies, such as unpaid or underpaid taxes, erroneous refunds, or wrongly claimed input tax credit. These discrepancies must be due to fraud, wilful misstatements, or the suppression of facts to evade taxes. The demand for Tax under Sections 74 of the CGST Act 2017 are Notice Issuance The proper officer can issue a notice to the person responsible for such tax discrepancies, asking them to explain why they s..
Subject: Procedure to be followed with respect to sub-section (2) of section 83 of CGST Act, 2017 when provisional attachment of property ceases to have effect - reg. Attention is invited to section 83 of the CGST Act, 2017. It has the provisions to issue order for provisional attachment of property, including bank account, to protect interests of revenue in appropriate cases. At present, the procedure for provisional attachment and release/restoration of such property is prescribed in rule 1..
The captioned rule deals with differences in ITC availed as per GSTR-3B and credit reflecting in GSTR-2B of a particular period/periods. Brief background Before insertion of Rule 36(4) of CGST Rules, i.e. for the period upto 9 October 2019, input tax credit was availed by taxpayer on self-declaration basis. With effect from 9 October 2019, Rule 36(4) of CGST Rules was inserted vide Notification No. 49/2019-Central Tax, which mandated availment of ITC pursuant to matching of ITC with credit..
CGST Delhi West Commissionerate busts nexus of more than 30 fake firms and arrests a person in special drive against fake registrations The CGST Delhi West Commissionerate under CGST Delhi Zone, upon analysis of an entity under investigation as part of Special Drive against fake registrations, found multiple entities registered on the same address wherein the said address was found existent during verification but the owner of the said premises denied any knowledge about existence o..
General Overview As we are aware that any transactions/activities which fall within the scope of "Supply" as per Sec 7 of the CGST Act, 2017 will be chargeable to GST. Further, while analyzing the nature of transactions/activities for the purpose of chargeability of GST, there are instances- (i) Where there is no Consideration involved, but still it would be considered as "Supply" as per Schedule I of CGST Act, 2017. (ii) There are certain transactions/activities whi..
General Overview As we are aware that any transactions/activities which fall within the scope of "Supply" as per Sec 7 of the CGST Act, 2017 will be chargeable to GST. Further, while analyzing the nature of transactions/activities for the purpose of chargeability of GST, there are instances- (i) Where there is no Consideration involved, but still it would be considered as "Supply" as per Schedule I of CGST Act, 2017. (ii) There are certain transactions/activities which..
Rule 86A of CGST Rules, 2017: How to protect your input tax credit from being blocked Introduction Rule 86A of the CGST Rules, 2017, plays a crucial role in protecting the input tax credit (ITC) of taxpayers. It empowers the Commissioner or an authorized officer to block the ITC if it has been fraudulently availed or is ineligible. In this article, we will delve into the circumstances under which ITC can be blocked, the safeguards and legal judgments favoring taxpayers, and the importance ..
What does Section 15 Say? Section 15 of the CGST ACT 2017 talks about the Value of Supply of Goods or Services or Both shall be the Transaction Value, Which is the Price actually paid or payable for the supply of goods or services or both where the supplier and recipient of the supply are not related and the price is the sole consideration for the supply. Section 15 is a very important section as the Value of Supply needs to be determined without which the Tax Liability cannot be ascertained...
What does Section 62 say? Section 62 of CGST ACT 2017 talks about the assessment of those registered taxpayers who have not filed their GST returns within the prescribed due dates. The Proper Officer shall assess the Tax Liability along with necessary interest and penalties which shall be deposited by the Registered Taxpayer upon service of notice from the Proper Officer. The reference from the Law has been described below: (1) Notwithstanding anything to the contrary contained in secti..
What does Section 27 say? Section 27 of the CGST ACT 2017 talks about special provision relating to grant of GST Registration to Casual Taxable Person and Non-Resident Taxable Person, also covering the provisions which the casual taxable person and non-resident taxable person has to follow. Let us understand through GST Law reference as described below The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period spec..
What does Section 19 say? Section 19 of the CGST ACT 2017 talks about the availability of input tax credit by the principal in respect of goods sent to the job worker. Job work is a business mechanism where the job worker works under the direction of principal and inputs are sent by the principal. Now let us understand the GST Law as described below: (1) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a..
Section 73 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful-misstatement or suppression of facts. What does Section 73 say? Section 73 talks about the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful-misstatement or suppression of facts. Law Reference (1) W..
The Central Board of Indirect Taxes and Customs (CBIC) has notified the Central Goods and Services Tax (Fifth Amendment) Rules, 2022, on the recommendations of the 48th GST Council Meeting. The Central Goods and Services Tax (Fifth Amendment) Rules, 2022 shall be effective on 26 December 2022. 1. PAN to be verified through separate one-time passwords The Permanent Account Number shall be validated online by the common portal from the database maintained by ..
The CBI has arrested a Superintendent of CGST, Anti-Evasion Unit, Vashi, Navi Mumbai (Maharashtra) in a bribery case for demanding a bribe of Rs 20 Lakh for closing an investigation and not arresting the accused in a GST evasion case. It was further alleged that the accused agreed to take Rs 10 lakh. Searches were conducted at the premises of the accused which led to the recovery of incriminating documents and various movable as well as immovable assets. The arrested accused..
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) NOTIFICATION New Delhi, the 28th September, 2022 No. 19/2022-Central Tax GS.R. 734(E).—In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act. 2017 (12 of 2017), the Central Govemment, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namel..
The Bhiwandi Commissionerate of Central Goods and Service Tax (CGST) on Saturday busted a case of non payment of GST and fraudulent availment of ITC that amounted to Rs 78 crore. "CGST Bhiwandi Commissionerate in Mumbai Zone busts case of non-payment of GST and fraudulent availment of ITC, amounting to Rs 78 cr," said Sumit Kumar, Commissoner, CGST. The action was taken upon a specific intelligence that booked the aforesaid case against M/S A S Agri and Aqua LLP having GSTIN 27AB..
Officers of CGST Bhiwandi Commissionerate in Mumbai Zone have busted a fake invoice racket involving issuance of invoices amounting to Rs 132 crore and availing/passing on Input Tax credit of Rs 23 crore. Officers of CGST Bhiwandi Commissionerate arrested one person on 9.09.22 who has been sent to judicial custody till 23.09.22. Anti-evasion wing of CGST Bhiwandi Commsissionerate was investigating various fake firms namely M/s Mectech Steel Trading Private Limited M/s UGSK Trader, M/s W..
CGST Mumbai South Commissionerate busts Rs. 142 Crore fake GST invoice racket One person arrested in the case Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to pass on fake GST Input Tax Credit (ITC) of Rs. 27.80 crore on invoices of Rs 142 Crore, and have arrested the Director of M/s Techno Satcomm India Pvt. Ltd. for issuing GST invoices without actual supply of goods. Acting on a specific input received from Central Intelligence Un..
After examining judgment of Hon'ble Supreme Court of India in Siddharth vs The State of U.P. Criminal Appeal No. 838 of 2021, arising out of SLP (Crl.) No. 544'2/2021, Board issued guidelines with respect to arrest under CGST Act, 2017. & Other legacy laws vide Instruction No. 02/2022-23. Conditions for arrest Section 132 (1) of CGST Act, 20 l7 deals with the punishment for offences specified Section 69 (1) gives power to the Commissioner to arrest a person where he has reas..
Guidelines on issuance of summons under Sec 70 of the CGST Act 2017 1. It has been brought to the notice of the 'Board' that in certain instances, summons under Section 70 of the Central Goods and Services Tax Act, 2017 (the 'CGST Act') have been issued by the field formations to the top senior officials of the companies in a routine manner to call for material evidence/ documents. Besides, summons have also been issued to call for statutory records, viz. GSTR-3B, GSTR-1, etc...
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