THE SALES TAX
PRACTITIONERS’ ASSOCIATION
OF MAHARASHTRA
GST Seminar on 14.05.2017
Adv. C.B. Thakar
COVERAGE
Refunds
Assessment
Audit
Search, Seizure and Arrest
Offences and Penalties.
REFUNDS
In tax laws refund of excess from
government is an essential aspect.
Till today under BST/VAT Refund used to
arise from Returns/Orders and used to be
granted with some additional procedure
of filing application.
Under GST there will be changes and
required to be noted carefully.
SITUATIONS WHERE REFUND
CAN ARISE
• Refund in Electronic Cash Ledger
Section 49(6)
• Refunds to UNO etc. Section 54(2)
• Refunds in case of Zero-Rated Supplies
Section 54(3)
• Refunds due to higher rate on input/lesser
rate on output
• Others
Refund Application
• Application for Refund to be filed within 2
years from the relevant date Section
54(1)
• Different dates in different situations
Section 54(1)
• Application to be accompanied with
prescribed documents like invoices, self
declaration
etc.
Non-Passing
of
Tax/interest to others
• Credit of refundable amount to Consumer
Welfare FundSection 54(5)
• Provisional refund of 90% in case of “ZeroRated Supply”Section 54(6)
• Process of Refund Order to be completed
within 60 daysSection 54(7)
Payment of refund instead of Consumer Welfare Fund in
following cases Section 54(8)
(a) refund of tax paid on zero-rated supplies of goods or services
or both or on inputs or input services used in making such
zero-rated supplies;
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either
wholly or partially, and for which invoice has not been issued,
or where a refund voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the
applicant, if he had not passed on the incidence of such tax
and interest to any other person; or
(f) the tax or interest borne by such other class of applicants as
the Government may, on the recommendations of the Council,
by notification, specify.
• Even for refund as per order conditions of
filing application and other conditions will
apply Section 54(9)
• Refund after adjustment of prior dues and
withholding of refund till all returns are
filed Section 54(10)
• Withholding of refunds in case of pending
matters Section 54(11)
• Withhold refund to carry interest at
prescribed rate Section 54(12)
• Casual dealer can get refund of Advance Tax
upon filing all returnsSection 54(13)
• No
refund
of
amount
less
than
₹1,000Section 54(14)
• Refund
to
UNO
and
other
organisationsSection 55
• There are provisions for grant of interest on
refund. Interest from 61st day of filing
Application till grant of refundSection 56
• There are provisions for Consumer Welfare
Fund with guidelines for utilisation
Section 57 and Section 58
• There are connected refund provisions like
Section 16 of IGST Act for “Zero-rated”
Supplies; Section 77 of CGST Act for
wrong tax payment.
ASSESSMENTS
• Self Assessment Section 59
• Provisional Assessment Section 60
– Where filer of return is unable to decide value/rate of
tax, he can pay tax on provisional basis after
informing Officer in writing.
– Passing of order by Proper Officer within 90 days
determining the issue.
• There may be conditions for bond.
• Final Assessment Order within six months or
further extended period.
• Provisions for charging and paying interest exist.
• Scrutiny of Returns Section 61
If discrepancies is communicated but not
fulfilled then there may be assessments.
• Assessment of non filers of return
Section 62
• Ex-parte best judgment order upon failure
to file return after giving notice – it is
subject to cancellation if return filed within
30 days of service of such order Section
62
• Assessment of URP within five years from
date of filing Annual Return Section 63
• Summary Assessment Section 64
In case of emergency with prior permission
It can be on person in-charge of goods also
Such order can be cancelled by higher officer
for regular assessment.
• Normal Assessment Provisions Section 73
• In case of evasion Section 74
• General Assessment Provisions Section 75
Section 65-Audit by Tax Authorities
• Section 2(13) of the CGST Act, 2017, defines
“audit” as the examination of records, returns and
other documents maintained or furnished by the
registered person under this Act or the rules made
thereunder or under any other law for the time
being in force to verify the correctness of turnover
declared, taxes paid, refund claimed and input tax
credit availed, and to assess his compliance with the
provisions of this Act or the rules made thereunder.”
Section 65-Audit by Tax Authorities
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The commissioner of SGST or CGST or any officer authorized by him by
way of general or specific order may conduct the audit of any taxable
person.
Audit shall be conducted at the business place of Registered Taxable
person.
RTP shall be informed in advance not less than 15 days.
Audit shall be completed within three months from the date of
commencement.
For any reason if the commissioner is satisfy that audit can not be
completed with in three months , for reason to be recorded in writing ,
may extended it for further period of six months.
Commencement date of audit for the above sub section shall be , the date
of record and other document called and submitted by RTP or Start of
audit at RTP office which ever is later.
Within 30 days from the conclusion of audit, the proper officer will inform
the RTP of audit finding and reason of the same.
Where the audit result in detection of tax not paid, short paid or
erroneously refunded or ITC wrongly claimed or utilized, the officer may
start action.
Section 66-Special Audit
• If during scrutiny, enquiry, investigation or any other proceeding,
any officer not below the rank of Asst. commissioner/ deputy
commissioner with the approval of commissioner when ever he feels
that there is question of loss of interest of revenue, where the value
has not been declared adequately, credit availed is not as per norms,
may direct such RTP in writing to get his record including books of
accounts audited by chartered accountant or cost accountant
nominated by the commissioner.
• The chartered accountant or cost accountant within period of 90
days , submit his report duly signed to asst. / deputy commissioner.
He may be permitted to extend the same by another 90 days on
sufficient reason.
• The expenses and fees of audit shall be determined and paid by
commissioner.
INSPECTION, SEARCH,
SEIZURE AND ARREST
• Power of inspector under section 67 when
there is reason to believe;
• Tax evasion either by any taxable person or
URP or goodown keeper etc.
• Power of search and seizure of documents/goods
Section 67(2)
• Powers to include break open/return of unrequired
papers, grant of copies, release of goods on
bond/return of goods, disposal of perishable or
hazardous goods, inventory of goods etc. are
specified in Sections 67(3) to 67(16).
• There is power for spot seizure of documents as well
as dummy transactions for finding of evasionsSection 67(11) and 67(12)
• E-way Bill procedure to be authorized by Section 68
and there can be interceptions during movement of
goods.
POWER TO ARREST
• Section 69 provides for power to arrest to be
executed by officer under Central Tax. The
procedure is akin to Code of Criminal Procedure.
• There are powers for summoning any person for
evidence Section 70
• There are powers to access to any place of
business for inspection and also to call for
assistance Section 77
• All other government agencies like Police, Railway
etc. to assist GST authorities for implementation of
GST.
PENALTY AND OFFENCES
• Like any other Fiscal Statute, GST contains
penalty and offences provisions
• Section 122 provides various instances for
attracting penalty like issue of false
invoices etc.
• Penalty can be Rs. 10, 000 or upto tax
evasion.
• Similarly different situations are provided
with different limits.
• Section 123 provides punishment of Rs. 10,000
for failure to file Information Return.
• Under Section 124 provides fine for failure to
furnish statistics.
• Under Section 125 general powers to levy
penalty upto Rs. 25,000, where no specific
penalty is provided.
• Section 126, General principles for penalty-no
penalty to be levied for minor breaches or
technical breaches which can be rectified and
which are without mens rea
• Section 127 gives general power to levy penalty.
• Section 128 gives power to waive penalty by
notification
• Section 129 provides for detention, seizure
and release of goods and conveyance in
transit.
• Similarly
Section
130
permits
for
confiscation of goods and conveyance.
• Section 131 clarifies that a person can be
liable under this Act irrespective of other
law and also under other law.
• Section 132 prescribes instances for fine
and imprisonment.
• There are other incidental and ancillary
provisions about penalty/offences.
THANK YOU