Instruction for recovery due to discrepancy

- Sales Tax ઃ Soham Mashruwala

Under the GST Act, there were many assurances from the government that everything from tax credits to rolls would be processed automatically but on this very day the trader has a lot of trouble in asking for credit and it is increasing day by day.

On the other hand, the government is making strict provisions for tax collection. From January 1, 206, the merchant has been given the power to withdraw money directly from the bank account without giving notice. Provision has been made to borrow money from the bank account without any recovery procedure instead of automatically collecting the tax. Has been given to the Commissioner. This instruction is binding on all the officers but only time will tell how much will be complied with. This topic is discussed in today's article.

Amendment under GST Act

In case of non-discharge of automatically accepted liability in GSTR 3B as per section 3 (12), the authority to recover under section 6 has been given directly to the officer and he will be able to recover the amount from the bank account.

Notification

The reasons given by the government for the discrepancy between GSTR 1 and GSTR 3B have been noted in view of the error in the instruction and the following is an example.

(1) It may be that there is an error in filling up the forms in GSTR 1 and GSTR3B due to which the information has been incorrect. The trader has been given an opportunity to rectify the error in the second month.

(2) It often happens that the trader has to show the transaction in GSTR 1 but has paid his tax in GSTR 3B. The details of this bill are shown in the next GSTR1 but its tax is paid in the previous GSTR3B.

Method of action

It is important to give the trader a chance to hear when there is a good reason. And there is no need to charge directly. In addition, the account officer has to take the DIN number and give a reasoned notice to the trader in which the amount of discrepancy has to be shown and an explanation has to be sought. After receiving this disclosure, the officer has to check whether the answer is satisfactory. If the answer is correct then no charge has to be levied under section 4.

Thus, it is mandatory to give notice before recovery under section 4.