Page 114 - DHC Budget Book 2021-22 Final

10.2.4 Self-assessed tax to include details of outward supplies furnished in Form GSTR-1 but not in Form GSTR-3B
— Sec. 75(12) of the CGST Act, 2017 states that where any amount of self-assessed tax in Form GSTR-3B remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered as per the Recovery Provisions.
c) Issue of invoice or bill without supply of goods or services
d) Availment or utilization of ITC without actual receipt of goods or services
e) Availment or distribution of ITC input tax credit in contravention of the provisions of Input Service Distributor.
Comments
— The Bill proposes to insert an Explanation to Sec. — 75(12) of the CGST Act, 2017 to clarify that “self- assessed tax” shall include details of outward
supplies furnished in Form GSTR-1 but not in
Form GSTR-3B.
Comments
— As per the proposed amendment, recovery proceedings can be directly initiated by the department, without issuance of a SCN under Sec. 73 and 74 of the CGST Act, 2017 or any other notice prescribed under law (For ex. Form GST ASMT-10), if tax liability as per GSTR-1
is more than tax liability disclosed in GSTR- 3B. This appears to be a deterrent provision in view of the rampant misuse of the system by unscrupulous persons.
10.2.5 Provisional attachment of property of persons involved in a fraudulent transaction
— Currently, Section 83 of the CGST Act, 2017, empowers the Commissioner to attach provisionally, any property, including bank account, belonging to the taxable person during the pendency of proceedings.
— The Bill proposes to allow provisional attachment immediately after initiation of the proceedings under Chapter XII, Chapter XIV or Chapter XV. Moreover, Commissioner may also attach property belonging to the person who retains benefit of the following fraudulent transactions –
a) Supply of goods or services without issue of invoice
b) Supply of goods or services issuing an incorrect or false invoice
112 Building a Resilient and Confident India
INDIA BUDGET 2021-22
The Commissioner has been now empowered to provisionally attach property of not only the person engaged in fraudulent transactions, but also taxpayer who retains benefit of some specified fraudulent transactions. Thus,
the provision empowers the Commissioner to proceed on persons at both ends of the fraudulent transaction.
— The amendment also proposes to remove anomalies which are subject matter of dispute with varied courts by specifying that the Commissioner may attach property immediately after initiation of the proceedings under specified chapters. For ex. The Hon’ble High Court of Karnataka in the case of Anandbhavan Properties (P) Ltd. vs Union of India [2020[34] G.S.T.L. 143] and the Hon’ble High Court of Gujarat in the case of Cengres Tiles Ltd. vs State of Gujarat [(2019) 75 GST 768 (Gujarat)] held that the pendency of proceedings under Sec.
83 of the Act would be only after issuance of notice u/s 62, 63, 64, 67, 73 or 74. In absence of issuance of notice under the said Sec., one cannot draw inference that there is pendency of any proceedings. Pursuant to the amendment, the point of dispute with reference to Sec. 83 would be removed.
10.2.6 Amendment in Detention, seizure, release and confiscation of goods or conveyance in transit
— Sec. 129 of the CGST Act, 2017 provides for detention and seizure of goods, conveyance and related documents in transit when transportation or storage of goods is in contravention of provisions of the CGST Act, 2017.