Category: Demand and Recovery under GST

The Commissioner shall issue order for reduction of any demand in Form GST DRC-25 to the taxable person and the appropriate authority with whom the recovery proceeding is pending. The recovery proceedings already initiated prior to the disposal of such appeal/revision may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.

(ICAI FAQ PUBLICATIONS 06-09-2017 Continuation and validation of certain recovery proceedings : FAQ NO. 59)

The Commissioner shall issue order for enhancement of any demand in Form GST DRC-25. In so far as the amount already confirmed prior to disposal of appeal/revision, the recovery proceedings may be continued from the stage at which such proceedings stood immediately before such disposal.

(ICAI FAQ PUBLICATIONS 06-09-2017 Continuation and validation of certain recovery proceedings : FAQ NO. 58)

Yes. Every provisional attachment order shall cease to have effect after the expiry of one year from the date of such order.

(ICAI FAQ PUBLICATIONS 06-09-2017 Provisional attachment to protect the revenue in certain cases : FAQ NO. 57)

The property of a taxable person provisionally attached be released under the following circumstances:                                                                                                                (a) Where the property attached is of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such property or the amount that is or may become payable by him, whichever is lower, then such property shall be released forthwith by an order in Form GST DRC-23, on proof of payment.
(b) Any person whose property is attached may, within 7 days of such attachment, file an objection to the effect that the property attached was or is not liable to be attached, and the Commissioner may, release the said property by an order in Form GST DRC-23 after giving an opportunity of personal hearing to the person filing the objection.
(c) The Commissioner may, upon being satisfied that the property was, or is no
longer liable for attachment, release such property by issuing an order in Form GST DRC-23.

(ICAI FAQ PUBLICATIONS 06-09-2017 Provisional attachment to protect the revenue in certain cases : FAQ NO. 56)

Yes. During the pendency of any proceedings under section 62, 63, 64, 67, 73 or 74, the Commissioner shall pass an order in Form GST DRC-22 to attach any property including bank account belonging to a taxable person provisionally for the purpose of protecting the interest of the Government revenue.

(ICAI FAQ PUBLICATIONS 06-09-2017 Provisional attachment to protect the revenue in certain cases : FAQ NO. 55)

Yes. Notwithstanding anything to the contrary contained in any law for the time being force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, first charge shall be on –
(a) the property of taxable person in respect of any amount payable by such taxable person, or
(b) the property of any other person on account of tax, interest or penalty which he is liable to pay to the Government.

(ICAI FAQ PUBLICATIONS 06-09-2017 Tax to be first charge on property: FAQ NO. 54)

Such charge or transfer shall be void against any claim in respect of any tax or any other sum payable by the said person. However, such charge or transfer shall not be void, if it is made for adequate consideration and without notice of the pendency of such proceedings under the Act, or without notice of such tax or other sum payable by the said person, or with the previous permission of the proper officer.

(ICAI FAQ PUBLICATIONS 06-09-2017 Transfer of property to be void in certain cases: FAQ NO. 53)

Where there is default in payment of any one installment on its due date by the taxable person, the whole outstanding balance payable on such date shall become due and payable forthwith, without any further notice. The proper officer can initiate recovery of dues.

(ICAI FAQ PUBLICATIONS 06-09-2017 Payment of tax and other amount in installments: FAQ NO. 52)

No. The proper officer shall have the power to allow payment of any amount due under this Act in installments on tax other than the self-assessed tax.

(ICAI FAQ PUBLICATIONS 06-09-2017 Payment of tax and other amount in installments: FAQ NO. 51)

The facility of payment of tax dues in installments shall not be allowed where:
(a) The taxable person has already defaulted in payment of any amount under the CGST Act or IGST Act or UTGST Act or any SGST Act for which recovery process in on;
(b) The taxable person has not been allowed to make payment in installments in the preceding financial year under the CGST Act or IGST Act or UTGST Act or any SGST Act;
(c) The amount for which installment facility is sought is less than ` 25,000/-.

(ICAI FAQ PUBLICATIONS 06-09-2017 Payment of tax and other amount in installments: FAQ NO. 50)