CBIC has stated that the Principal commissioner or commissioner-level officers could provide the directions to recover the GST dues within the said 3 months of serving the demand order.
Under the GST statute, when a taxable individual does not file the amount stated under an order passed under the CGST act within 3 months from the service date of such order, the tax officer could execute the recovery proceedings just after the expiry of such duration.
In certain matters where the same is important in the revenue interest, the proper officer, after recording the causes in writing, might ask a taxable individual to file the amount in the said duration in a shorter time frame than 3 months.
The Central Board of Indirect Taxes and Customs (CBIC) quoted that it has been drawn to its notice that certain field formations are executing the recovery before the said duration of 3 months from the service date of the order, despite the matters where the taxable individual has not been needed via the proper officer, for the causes to be recorded in writing for the payment of these amount in the lesser duration.
To ensure constancy in the provision of law execution across the field formations, the board issues the stated instructions to comply in the matters where it is important in the revenue interest, to execute the recovery prior to the duration of 3 months from the service date of the order, CBIC quoted.
Jurisdictional Deputy or Assistant Commissioner of Central Tax undertakes the recovery proceedings.
In matters where early recovery is considered essential, the jurisdictional Deputy or Assistant Commissioner is mandated to present the case, along with the reasons for early recovery, to the jurisdictional Principal Commissioner or Commissioner of Central Tax, the CBIC stated.
The Principal Commissioner or Commissioner must record reasons in writing if agreed with the reasons.
The Principal Commissioner or Commissioner, on recording these reasons, may GST issue orders to the related taxable person to pay the amount in less than 3 months from the order’s service date.
The very directions make a balance between safeguarding revenue and maintaining ease of doing business.
Allotting precise norms and mandating the appropriate documentation for early recovery measures, the instructions enhance transparency, and predictability in tax administration.
It is anticipated that state tax administrations shall furnish identical norms to address the issues faced by taxpayers under state jurisdictions. The very coordinated measure facilitates tax compliance and promotes a fair tax environment in the nation.
