The proper officer shall determine the tax payable by such person deeming as if the Notice were issued under section 73(1).
(ICAI FAQ PUBLICATIONS 06-09-2017 General provisions relating to determination of tax : FAQ NO. 21)
Where the service of Notice or issuance of order is stayed by an order of a Court or Appellate Tribunal, can the period of such stay be excluded in computing the period specified in sub-sections (2) and (10) of section 73 or and sub-sections (2) and (10) of section 74
Yes. The period of stay would be excluded for the computing the time limit for issuance of show cause notice or order under Section 73 and Section 74.
(ICAI FAQ PUBLICATIONS 06-09-2017 General provisions relating to determination of tax: FAQ NO. 20)
Where the show cause notice is issued to main person liable to pay tax and some other persons under the same proceedings, what will happen to penalty proceedings initiated against other persons on conclusion of proceedings against the main person under section 73 or 74
The penalty proceedings against all other persons under sections 122, 125, 129 and 130 are deemed to be concluded on conclusion of proceedings against the main person liable to pay tax.
(ICAI FAQ PUBLICATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts ; FAQ NO. 19)
What is ‘Suppression’
The term ‘Suppression’ means non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under the Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing by the proper officer.
(ICAI FAQ PUBLICATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts: FAQ NO. 18)
What is the maximum penalty leviable under section 74
Penalty equivalent to 100% of the tax.
(ICAI FAQ PUBLICATIONS 06-09-2107 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts : FAQ NO. 17)
If the show cause notice is issued under section 74(1) or 74(3) and thereafter the person chargeable with tax makes payment, is there any need to adjudicate the case
No. Where the person chargeable with tax, pays the tax along with interest under section 50 and applicable penalty within 30 days of communication of the order, all proceedings in respect of such notice except for proceedings under section 132 shall be deemed to be concluded.
(ICAI FAQ PUBLICATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts: FAQ NO. 16)
Whether the proper officer can proceed to issue notice in case of shortfall in payment under section 74(5) by the person chargeable with tax
Where the proper officer is of the opinion that the amount paid under section 74(5) falls short of the actual amount payable, he shall proceed to issue show cause notice under section 74(1) for such shortfall.
(ICAI FAQ PUBLICATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts: FAQ NO. 15)
Where a case is adjudicated under section 74 and order issued confirming tax demand and penalty, does the Noticee have any option to pay reduced penalty
Yes. The person served with order under section 74(9) along with a summary
electronically in Form GST DRC-07,shall pay the tax along with interest under section 50 and a penalty equivalent to 50% of such tax within 30 days of the communication of the order [Section 74(11)]. On such payment, all proceedings in respect of the said notice except for proceedings under section 132 shall be deemed to be concluded.
(ICAI FAQ PUBLICATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts: FAQ NO. 14)
Can the person chargeable with tax pay the amount of demand along with interest and reduced penalty after the issue of notice under section 74(1) or 74(3) , but before the adjudication and issue of order under section 74
Yes. The person chargeable with tax under section 74(1) or the statement under section 74(3) can pay the amount of tax along with interest under section 50 and a penalty equivalent to 25% of such tax within 30 days from the issue of notice [Section 74(8)]. The person chargeable with tax shall inform the proper officer of such payment in Form GST DRC-03 and the proper officer shall issue an order in Form GST DRC-05 concluding the proceedings in respect of the said notice. Please note that on such payment, all proceedings in respect of the said notice except for proceedings under section 132 shall be deemed to be concluded.
(ICAI FAQ PUBLCIATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts: FAQ NO. 13)
Can the person chargeable with tax pay the amount of demand along with interest and reduced penalty before the service of show cause notice under section 74(1) or as the case may be, the statement under section 74(3)
Yes. The person chargeable with tax can pay the amount of tax along with interest under section 50 and a penalty equivalent to 15% of such tax based on his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. in Form GST DRC-03. On receipt of such information, the proper officer shall issue an acknowledgement for accepting the payment made by the said person in Form GST DRC-04 and he shall not serve any notice in respect of tax so paid or any penalty payable under the provisions of this Act or rules made there under.
(ICAI FAQ PUBLICATIONS 06-09-2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts: FAQ NO. 12)