Initiation of Quicker GST Recovery ProceedingsAnalysis Section 79 and CBICs GuidelinesAdyasha Mohanty

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The Tax Publishers GST--Recovery of Tax Initiation of Quicker GST Recovery Proceedings--Analysis Section 79 and CBIC's Guidelines Adyasha Mohanty The learned author seeks to make an analytical study of the provisions relating to initiation of recovery proceedings and CBIC's Guidelines issued in Instruction No. 1/2024-GST. 1. Introduction The Goods and Services Tax (GST) was introduced in 2017, to streamline India's indirect taxation system. However, recovering GST dues has been a significant challenge for authorities. To curb this, the Central Board of Indirect Taxes and Customs (CBIC) which is a part of the Department of Revenue under the Ministry of Finance, Government of India has issued some guidelines on 30-5-2024, vide instruction No. 1/2024-GST for initiation of recovery proceedings before three months from the date of service of demand order. In this, the CBIC has clarified that the proposals eligible for recovery within 3 months will be reviewed by the jurisdictional principal commissioner or Commissioner of Central Tax, who will issue orders or directions after recording reasons in writing. 2. Analysis of Section 79--Recovery of tax Section 79 of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions relating to recovery of tax, interest, penalty, or any other amount. In simple terms, it empowers the government to recover its dues from a defaulting taxpayer through various means of recovery that are as follows :-- -- Deduction from any amount due from the government to the assessee. -- Attachment and sale of movables or immovables of the taxpayer. -- Garnishee proceedings where third parties who may hold money for the taxpayer can be directed to pay taxes. -- Seizure and sale of goods about the taxpayer. -- Appointment of a receiver for the running of the taxpayer's properties, where necessary. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Recovery of Tax

Initiation of Quicker GST Recovery Proceedings--Analysis Section 79 and CBIC's Guidelines

Adyasha Mohanty

The learned author seeks to make an analytical study of the provisions relating to initiation of recovery proceedings and CBIC's Guidelines issued in Instruction No. 1/2024-GST.

1. Introduction

The Goods and Services Tax (GST) was introduced in 2017, to streamline India's indirect taxation system. However, recovering GST dues has been a significant challenge for authorities. To curb this, the Central Board of Indirect Taxes and Customs (CBIC) which is a part of the Department of Revenue under the Ministry of Finance, Government of India has issued some guidelines on 30-5-2024, vide instruction No. 1/2024-GST for initiation of recovery proceedings before three months from the date of service of demand order. In this, the CBIC has clarified that the proposals eligible for recovery within 3 months will be reviewed by the jurisdictional principal commissioner or Commissioner of Central Tax, who will issue orders or directions after recording reasons in writing.

2. Analysis of Section 79--Recovery of tax

Section 79 of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions relating to recovery of tax, interest, penalty, or any other amount. In simple terms, it empowers the government to recover its dues from a defaulting taxpayer through various means of recovery that are as follows :--

-- Deduction from any amount due from the government to the assessee.

-- Attachment and sale of movables or immovables of the taxpayer.

-- Garnishee proceedings where third parties who may hold money for the taxpayer can be directed to pay taxes.

-- Seizure and sale of goods about the taxpayer.

-- Appointment of a receiver for the running of the taxpayer's properties, where necessary.