Guidelines for Recovery of GST Short Paid
Written By PracticeGuru dated: 7th January, 2022
2 Min Read
Guidelines for Recovery Proceedings under the provisions of section 79 of the CGST Act, 2017 in cases covered under explanation to sub-section (12) of section 75 of the CGST Act, 2017 - Reg.
CBEC-20/16/05/2021-GST/23 dated 7/01/22 provides the following guidelines.
Whereever any such amount of tax, self-assessed by the registered person in his outward supply statement GSTR-1 is found to be short paid or not paid by the said person through his GSTR-3B retum in terms of the provisions ofsub-section (12) of section 75 of the Act, the proper officer may send a communication (with DIN, in terms of guidelines issued vide circular No. 12214112019-GST dated 5th November 2019) to the registered person to pay the amount short paid or not paid, or to explain the reasons for such short payment or non-payment of self-assessed tax, within a reasonable time, as prescribed in the communication. If, the concerned person is able to justify the differences between GSTR-I and GSTR-3B, or is able to explain the reasons of such short-payment or non-payment of tax, to the satisfaction of the proper officer, or pays the amount such short paid or not paid, then there may not be any requirement to initiate proceedings for recovery under section 79
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However, if the said registered person either fails to reply to the proper officer, or fails to make the payment of such amount short paid or not paid, within the time prescribed in the communication or such further period as may be permitted by the proper officer, then the proceedings for recovery of the said amount as per provisions of section 79 may be initiated by the proper officer. Further, where the said registered person fails to explain the reasons for such difference/ short payment oftax to the satisfaction of the proper officer, then the proper officer may proceed for recovery of the said amount as per provisions ofsection 79.
Download the Circular here
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