The GST Council’s recommendation to set limits on deposits payable by an assessee to file an appeal against any tax assessment could prevent filing of frivolous cases.“The amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs 25 crore and Rs 50 crore, respectively,” a note on the recommendations of the council in its 28th meeting in New Delhi last month said.Caps were prevalent even under the erstwhile VAT regime where a taxpayer had to deposit 15 per cent of the disputed amount to be later adjusted depending upon the outcome of the appeal.
According to Prabal Dey, additional commissioner of state tax, the GST has completed one year and as filing increases, disputes may emerge. Such a move, tax officials feel, may prevent a taxpayer from filing frivolous cases and delay the assessment process. Dey was speaking on the recent changes and amendments under the new indirect tax regime at a session organised by the Calcutta Management Association in association with The Telegraph.
State tax officers added that even as the upper limit for opting for the composition scheme was proposed to be raised from Rs 1 crore to Rs 1.5 crore, a notification effecting the change was awaited.”The present limit of turnover can now be raised on the recommendations of the council,” the July 21 note said.
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