SCNs for FY 2017-18 can be issued till September 30, 2023 as Time Limit for Issue of Demand Order stands Extended

By -

In a very important judgement delivered recently, a Single Bench of the Kerala High Court, has held that the extension granted to the time limit of  passing demand order under the Central Goods and Services Tax (CGST) Act 2017 and State Goods and Services Tax (SGST) Act 2017 are applicable to issue of Show Cause Notice (SCN) also.

The petitioner assessee challenged that the GST demand issued under Section 73 of the CGST/SGST Acts imposing on the petitioner a total liability of Rs. 9.7 Lakhs, towards CGST and SGST payable for the period from July 2017 to March 2018. 

The period for which the liability that was imposed on the petitioner was on the ground that under sub-section (10) of Section 73 of the CGST/SGST Acts, the time limit for completion of proceedings is three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized.

It was further argued that, by virtue of a notification issued under the provisions of Section 168A of the CGST Act, 2017,  the time limit for issuance of an order for the financial year 2017-18 has been extended up to 30.09.2023.

It was thus contended that the terms of said notification only the time limit for issuance of order has been extended and the time limit for issuance of a show cause notice has not been extended.

On the contrary, the department contended that, “when the time limit for issuance of an order under sub-section(10) of Section 73 stands extended, automatically the time limit for issuance of a show cause notice under subsection(2) of Section 73 also stands extended.

The Kerala High Court Bench observed that, “the show cause notice can also be issued with reference to the date 30.09.2023 and not with reference to any other date” and dismissed the writ petition.

Sigh of relief......


SRIVATSAN.R

GST-CHENNAI

Comments

Post a Comment

Popular posts from this blog

Mismatches between GSTR 2A vs 3B- Things to be considered before you respond to GST Notices

By -
Image
  Among the discrepancies for which notices are issued by department, mismatches between GSTR 2A vs 3B tops it all. Objective of this blog is to highlight aspects that are relevant while responding to the GST Notices especially for FY 2017-18 & 2018-19. Deadline to issue the order under sec 73(10) for FY 2018-19 is 30th April 2024, thus department is rushing orders in their favor, if you fail to highlight appropriate aspects in your reply to notices issued under sec 73/74. Introduction and relevance of GSTR 2A:   The FORM GSTR 2A was not established with a defined purpose for financial years 2017-18 and 2018-19.  Provision in respect of limit of ITC on basis of GSTR-2A was introduced only on 9-10-2019, but system was not fully established for some time.   Hence, for the financial years 2017-18 and 2018-19, insistence of matching of GSTR-2A and Input Tax Credit availed by recipient was not legitimized.  Provisions applicable from 9-10-2019 till 1-1-2022:   The ITC availed by recipie
Read more

Tracing the impact of Circular No. 170/02/2022 to GSTR-9 for FY 2022-23

By -
Image
 The purpose this circular No.170/02/2022 was to clarify mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1. The category of changes suggested are broadly in lines of : Changes relating to supplies through E-commerce operators Changes relating to reporting of inter-state supplies Changes relating to ITC Over this blog, we attempt to trace the changes relating to ITC on to respective rows of GSTR 9 for FY 2022-23. Clarification as such on these lines not available elsewhere, so its to be understood as our  personal view only for any wider consumption for application as such. Vide this  circular No.170/02/2022  para 4, the following key points were instructed: Presently, Table 4A of GSTR-3B contains the details of various ITC being claimed. Table 4B contains details of various reversals. Table 4C, i.e. the difference between 4A and 4B
Read more

No ITC for Vehicles Received under Stock Transfer unless for further Supply or Sale.

By -
Image
 No ITC for Vehicles Received under Stock Transfer for Specified Business Activities unless for further Supply or Sale. The Haryana Appellate Authority for Advance Ruling ( AAAR ) has held that ITC is not allowed for vehicles received under stock transfer for specified business activities unless for further supply or sale. The Applicant M/s BMW India Pvt. Ltd. Gurugram, which is registered in GST at Gurugram as a State-administered taxpayer for running a training center for the training of Engineers and Marketing professionals etc.  They get BMW branded vehicles made in Chennai plant as inter-state stock transfer on which IGST and compensation cess has been paid, and use these vehicles for ‘a very limited period of about 12 months, as Training fleet, Press fleet, Marketing fleet, Sales fleet, Visitor cars and Personally Assigned Vehicle.  The appellant applied before AAR for clarifying whether the Applicant unit is entitled to avail ITC of IGST and Compensation Cess paid on receipt of
Read more