Background:
On the recommendation of the 48th GST Council meeting the rule 88C was inserted in the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) with effect from December 26, 2022 for system based intimation to the registered person in cases where the output tax liability in terms of FORM GSTR-1 of a registered person for any particular month exceeds the output tax liability disclosed by the said person in the return in FORM GSTR-3B for the said month by a specified threshold.
Later, the GST Council in its 50th meeting has recommended to insert Rule 142B in the CGST Rules to provide the manner of recovery of the tax and interest in respect of the amount intimated under rule 88C of the CGST Rules which has not been paid and for which no satisfactory explanation has been furnished by the registered person.
Notification:
In order to align with recommendations of the 50th GST Council’s Meeting the CBIC vide Notification No. 38/2023 – (Central Tax) dated August 04, 2022 has issued ‘the Central Goods and Services Tax (Second Amendment) Rules, 2023’ to further amend the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”).
“142B. Intimation of certain amounts liable to be recovered under section 79 of the Act.–
(1) Where, in accordance with section 75 read with rule 88C, or otherwise, any amount of tax or interest has become recoverable under section 79 and the same has remained unpaid, the proper officer shall intimate, electronically on the common portal, the details of the said amount in FORM GST DRC-01D, directing the person in default to pay the said amount, along with applicable interest, or, as the case may the amount of interest, within seven days of the date of the said intimation and the said amount shall be posted in Part-II of Electronic Liability Register in FORM GST PMT-01.
(2) The intimation referred to in sub-rule (1) shall be treated as the notice for recovery.
(3) Where any amount of tax or interest specified in the intimation referred to in sub-rule (1) remains unpaid on the expiry of the period specified in the said intimation, the proper officer shall proceed to recover the amount that remains unpaid in accordance with the provisions of rule 143 or rule 144 or rule 145 or rule 146 or rule 147 or rule 155 or rule 156 or rule 157 or rule 160.”.
The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009820/ENG/Notifications
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