taxable and non-taxable person

Special provisions relating to taxable person and non-taxable person:

The certificate of registration will be issued to a taxable person or a non-resident taxable person will be valid for a period of 90 days from the effective date of registration.

The officer may extend the duration of ninety days by the request of a taxable person.

A casual taxable person or a non-resident taxable person can make the advance deposit of tax at the time submission of application for registration under sub-section (1) of section 19. The advance deposit must be equivalent to the estimated tax liability of such person for the period for which the registration been sought.

The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilized in a manner given in section 35.

Amendment of registration:

Every taxable person can inform to the proper officer if any changes need to be furnished at the time of registration or can furnish subsequently within such periods as may be prescribed.

The proper officer can approve or reject the amendments in the registration based on the information furnished to him.

And the other important thing is that the officer cannot the reject the request for registration without giving a notice to show cause and without giving a person a reasonable opportunity of being heard.

Any approval or rejection of amendments only can be done under the CGST/SGST act.

Payment of tax, penalty, interest and other amounts:

Every payment towards tax, penalty, interest and other amount by a taxable person through internet banking or by using credit/debit cards or the National Electronic Fund Transfer (NEFT), or the real time gross settlement or by any other mode will be subjected to certain conditions and restrictions. The amount will be credited in the electronic cash ledger of such a person to be maintained in a manner which has been prescribed.

The date of credit to the account in the authorised bank shall be considered as the date of deposit.

The input tax credit which is self-assessed in the return of the taxable person will be credited to the electronic credit ledger.

The amount which is available in the electronic ledger can be used for taxes, penalty and other payments under the provisions of the act or the rules in such a manner and such a condition and such a time as prescribed.

The amount of ITC on the account of IGST, in the electronic ledger be first utilised for IGST and if any amount remaining, it can be utilised for SGST and CGST in that order.

In the similar way, on the account of CGST, the amount of ITC from the ledger will be first utilised for CGST and the remaining amount will be used for IGST. But, the SGST cannot be benefited through that.

Interest on delayed payment of taxes:

Every person is liable to pay taxes in accordance with the act or rules made thereunder, if a person fails to pay the tax to the account of the central and the state government within the period prescribed, or the tax unpaid, need to pay the interest at such a rates been notified on the recommendation of the GST council by the central and the state government.

The interest under sub-section (1) shall be calculated from the very first day the tax paid.

If suppose a taxable person makes an excess claim of Input tax credits or undue the tax under sub-section (10) of section 29, he will be liable to pay the interest for the undue and the excess claim at the prescribed rate and for the period will be computed in the manner prescribed.

Tax deduction at source

The Central and the State government may mandate a department or local authority or the establishment of central and state government or the government agencies or such a person can be notified by the central or the state government on the recommendation of a council.

Deductor –Deduct tax at the rate of 1% from the payment made or credited to the supplier (deductee will be the term referred here in this section), which is notified by the central and the state government on the recommendation of the council, where the total value of supply may exceeds 10 lakh of rupees.

For the purpose of deduction of tax, value of supply may be excluded in the tax which will be indicated in the invoice.

The amount deducted as the tax will be credited to the appropriate government by the deductor within 10 days after the end of the month in which deduction is made in a prescribed manner.

The deductor can furnish the certificate mentioning details such as contract value, amount deducted, rate of deduction, and amount paid to the appropriate government to the deductee.

If any deductor fails to furnish the details in the certificate to the deductee, after deducting the tax at source, within five days of crediting the amount to the appropriate government, the deductor will be liable to pay hundred rupees per day until the failure is rectified.

The amount of fee payable should not exceed five thousand rupees.

The deductee can claim the credit in the electronic cash ledger. If any deductor fails to pay the credit to the government, the amount deducted as tax under sub-section (1), will be liable to pay the interest in accordance with the provision of section 36 in addition with the deducted amount.

The refund to the deduction or deductee, arising on account of excess or erroneous deduction may be dealt with section 38.

No refund to the deductor, if in case, the deducted amount credited to the electronic cash ledger of the deductee.

Interest on delayed refunds:

If any tax refundable to the applicant is not refunded within three months from the date of receipt of application, interest at such rate will be calculated and issued by the central and state government as per the recommendation of the GST council.

Any order of refund is passed by the tribunal, appellate authority or as the case may be, by the court shall be deemed to pass under sub-section (4) and (4A) for this purpose.

Consumer Welfare Fund:

The Fund which is established by the central and the state government is said to be a “Consumer Welfare Fund”.

There shall be credited to the fund in a manner as prescribed in the sub-section 4 or sub-section 4A of section 38. Any income, from the investment amount credited to the fund and monies been received by the central and state government for the purpose of this fund.

Utilization of the funds:

Any money which is credited to the fund will be used by the central/state government for the welfare of the consumers. The government will act according to rules.

The central/state government can maintain or else if some other authority can maintain the separate accounts properly and the other relevant records in relation with the fund shall prescribe in consultation with the comptroller and the auditor general of India.

Accounts and other records:

Every registered person have to keep and maintain the true and correct account information, inward or outward supply of goods and services, manufacture of goods, input tax credit availed, output tax payable and paid, at a business place which has been mentioned in the certificate of registration. If one or more place of business place mentioned in the certificate, each and every accounts and other records can be kept at a concerned business place. The registered person can keep their account information in the electronic form. The commissioner or chief commissioner will notify taxable persons in order to maintain the additional documents and accounts for such purposes specified.

The registered taxable person with the annual turnover which exceeds the prescribed limit can get his accounts audited by the charted accountant or the cost account and the proper audited statement of the copy need to be submitted to the proper officer. The reconciliation statement of sub-section 2 of section 30 and such other documents need to be furnished.

Period of retention of accounts:

Every taxable person required to keep and maintain book of records of accounts under sub-section 1 of section 42 shall retain them until the expiry of sixty months from the date of filing the annual returns for that year pertaining to such records.

The taxable person who appeals or do revision before the tribunal or court or appellate authority, It may be filed by him or his authority, can retain the book of records and accounts for one year after the disposal of such appeal or revision or for the period which is specified under sub-section (1).

Audit by Tax authorities:

The commissioner of CGST or SGST or any officer authorised by them, in a general or a specific way, may audit the business transaction of a taxable person at such frequency and for such period and in such manner, it may be prescribed.

Under sub-section (1), the tax authorities may conduct audit either at the place of business or in their office.

The notice will be issued in order to inform about the audit to the taxable person prior to fifteen working days from the date of audit.

The audit will be very transparent and it can be completed within the period of 3 months from the date of commencement of audit.

If the commissioner found that the audit cannot be completed within three months, he may recorded the reason in writing and can extend the period which should not exceed 6 months.

Commencement of audit can simply mean that the date on which taxable person will be called for by the tax authorities to audit the records and other related documents at the place of business.

During the process of audit, the authorised person may require some facility to verify the book of account and other documents and that may be available at some other place.

To furnish all the details properly he may render assistance for the timely completion.

On conclusion of the audit, the officer need to inform the taxable person about whose records are audited, the taxable person’s rights, the findings and the reason for the findings without any delay.

Under sub-section (1) the audit will be conducted and results in detection of tax which are not paid or short paid or erroneously refunded, ITC erroneously availed.

The officer may take and initiate the action under section 51.

The CGST/SGST officer who is not below the joint commissioner, has some of the reasons to believe that

  • A taxable person who has suppressed any transaction of supply of goods/services or claimed ITC in excess of the entitlement or stocks of goods in hand or has indulged in contravention of the provision of the act or rules made thereunder to evade the tax under the provision of the act;
  • Any person engaged in the transporting of goods or the operator of the ware house or an owner or any other place to keep his goods which have escaped the payment of tax or kept his goods or accounts in such a manner likely to cause evasion of tax payable under the act, he may authorised in writing to any other officers of SGST/CGST in order to inspect any place of business of the taxable person or the person who engages in transporting goods or owner or operator of the warehouse or go down or any other places.
  • The CGST/SGST officer, pursuant to an inspection under sub-section (1) or otherwise has to believe that the goods liable to confiscation or any books or documents or things which are secreted in any place, he may authorise to write to CGST/SGST officer to search and seize the goods or he himself can search and seize the documents, goods or things;
  • Provided that the goods, books or documents or things shall be retained by such officer for so long it may be concern to examine and for inquiry or proceedings under the act;
  • The officer under sub-section (2) has the power to seal or open the door of any premises or break or to break open any almirah, box, or any receptacle where the goods, accounts, registers or documents are suspected to be concealed.
  • If the documents are seized from the person’s custody under sub-section (2) need to entitle and make copies thereof and extract the documents therefrom with the presence of SGST/CGST officers.
  • Where any goods are seized under sub-section (2) with no notice thereof, will be given sixty days of time period, within that the goods need to be returned to the person where it have been seized;
  • If it is shown the sufficient cause to extend the period , it can be done by the relevant authority;
  • The central or the state government, seized the perishable and hazardous nature of goods which has the relevant consideration as the passage of time to keep, constraints regard the storage space of goods. After the seizure, it can be disposed by the officer in a manner the central/state government prescribes.
  • The goods which is specified under sub-section (6) been seized by the proper officer under sub-section (2) need to prepare inventory of goods in such a manner, it has been prescribed.