The power conferred under Rule 86A is very drastic. Power under Rule 86A should be invoked only if fraudulent ITC or ineligible ITC has been claimed by the assessee and the authority has recorded the reasons for the same in writing.
The authority is bound to record the reasons of invoking Rule 86A in writing and communicate such reasons to the assessee. On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.
Hon’ble High Court held that power conferred under Rule 86A is very drastic. Power under Rule 86A should be invoked only if fraudulent ITC or ineligible ITC has been claimed by the assessee and the authority has recorded the reasons for the same in writing. In this matter, Hon’ble High Court relied on precedence of apex court in the matter of GKN Driveshafts (India) Limited Vs. ITO reported in (2003) 259 ITR 19 (SC) wherein it was held that in case of reopening of assessment under Section 143(3) of Income Tax Act, the assessee should be afforded an opportunity of hearing and he is entitled to know the reasons for reopening and is also entitled to object to such reopening done by the Assessing Officer. Same analogy is applicable in the given case also, the authority is bound to record the reasons of invoking Rule 86A in writing and communicate such reasons to the assessee. On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.
Central Board of Indirect Taxes (“CBIC”) has notified Central Goods and Service Tax (Fourth Amendment) Rules, 2021 vide Notification No. 15/2021-Central Tax dated 18th May, 2021 to make amendment in provisions related to Revocation of Cancellation of GST Registration and Refund under GST.
The GST Policy Wing of the Government of India passed a set of notifications under S.168A of the CGST Act, 2017 whereby the time limits and limitation period of various activities and actions of different authorities on multiple issues were specified and extended to certain dates based on the nature of the activity.
In this article we will discuss, about QRMP scheme issued by the Central Board of Indirect Taxes & Customs (CBIC) under Goods and Services Tax (GST) which help small taxpayers whose turnover upto Rs.5 crores. The QRMP scheme provides to the taxpayers to file a return GSTR-3B on a quarterly basis and pay tax every month.
On 23rd January 2020, the Central Board of Indirect Taxes and Customs (CBIC) has published Circular No.131/1/2020-GST regarding the Standard Operating Procedure (SOP). This new procedure is for those exporters whose refund has been stuck due to alerts in IGST refund at custom. In June 2018, the CBIC has noticed instances of fraudulent ITC claims using ineligible documents and subsequent utilization of the credit for the purpose of payment of IGST exports. In addition, there were substantial variations between the FOB value declared in the Shipping Bill and the Taxable Value declared in the GST returns, with the intent of
On 22nd January 2020, the Finance Ministry announced that taxpayers are now allowed to file GSTR-3B returns in a staggered manner. After taking the hassle of return filing into account, the Government has decided to ease the process for trade and industries. Hence they have introduced different measures. Here you are going to get a complete overview below. Therefore, go through the post now and understand all the changes that are going to come. Parameters for filing GSTR-3B Returns Before the release of the latest notification, every taxpayer used to have a deadline of the 20th of every month to
The Office of Directorate General of GST Intelligence has released a new notification to take actions against fake ITC claims. The DGGI issued the notification in the interest of Principal Chief Commissioners and Chief Commissioners, CGST, asking them to block Input Tax Credit under the 86(1)(a) of CGST Rules 2017. As the rule suggests, the Zonal Chief Commissioners can block or unblock Input Tax Credit availed against fake invoices. The Principal DG has released the notification to take action against the ITC claims issued without the proper receipt of Goods or services. However, the notification suggested some implementation to proceed
Incorporation of penal provision in any kind of statute is a mandate to ensure that applicable person make compliance thereof. Similarly, the Goods and Service Tax (“GST”) law provides for various penal action for non-compliance of GST provisions. One such action is suo-moto cancellation of GST registration and Revocation of GST Cancellation by the proper officer. 1. Cancellation of GST Registration by proper officer 1.1 Grounds of Cancellation of GST Registration Section 29(2) of Central Goods and Service Tax Act, 2017 (“CGST Act, 2017”) provides for various grounds of suo-moto cancellation of GST registration by proper officer such as: Registered
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