GST Daily – Editorial Team
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Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com.
The petitioner received notice under section 79(1) (c) of CGST Act, 2017 (the Act) for recovery of tax payable. It filed writ petition and contended that no order of assessment was served. It also submitted that the department didn’t issue any notice as provided under section 73 (1) of the Act nor the order of adjudication determining the GST liability was served. ? ? ?
The Honorable High Court observed that it is mandatory requirement under the Act that for initiation of recovery proceedings of tax, there has to be notice under section 73 (1) of the Act and after adjudication, the tax liability is to be determined specifying the actual tax liability, interest thereupon and also penalty for non-payment of tax within the prescribed time limitation. In the instant case, no order was served upon the petitioner as required under section 78 of the Act. Therefore, the Competent Authority was to be directed that operation of notice would remain stayed till next date of hearing subject to petitioner depositing 50 per cent of total payable tax amount within a period of three weeks after adjusting amount which was already paid. ? ? ?
The Government through Union Budget, 2022 has introduced one more layer to restrict the Input Tax Credit of buyer due to error of seller. This was contrary to the expectation, as after the saga of litigation under Section 16(2) (c) of CGST Act, 2017, it was expected that the Government will bury the hatchet but instead, the amendment has, perhaps, thrown baby out of the bath water. ? ? ? ? ?
Ultimately, Department will issue notices to the taxpayers for payment of differential liability. Hence, tax payers are going to knock the doors of authorities for justice and this will lead to more work pressure. In this article, the author has analysed new restriction laid down by Union Budget, 2022 for availing Input Tax Credit and problems faced by the industry.
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