Recently the GST council has made some recommendations in order to provide some relief to the tax department in case any taxpayer files any frivolous case against the tax assessment.
In the recommendation made by the GST council, it is said that there must be a set limit on the deposits payable by a taxpayer in case he wants to file an appeal against any tax assessment which he considers not valid.
According to the recommendation note, “The amount of pre-deposit payable for the filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs 25 crore and Rs 50 crore, respectively.”
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Such caps were also present in the earlier Value added tax (VAT) regime in which the taxpayer was required to deposit 15 per cent of the tax amount earlier to the department which was later adjusted according to the results of the appeal.
According to the additional commissioner of state taxes, this recommendation may save valuable time of the tax department as many of the taxpayers try to file fake cases against the assessment to delay the process and get away with the scrutiny.
GST has already crossed one year of its implementation and according to the number of filings getting increased day by day, there are chances that the taxpayer may create dispute regarding the assessment.
While apart from this, in the recent 29th GST council meeting, it was decided to offer 20 per cent cash back to the online transactions done via BHIM, Rupay and UPI for B2C transactions.
