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.
- The central or state government requires the person to carry the relevant documents who is in charge of carrying the conveyance of goods which exceeds fifty thousand rupees.
- The vehicle which is referred in sub-section (1) is intercepted by the proper officer at any 0f the places, he may require that person who is in charge of the said vehicle need to produce the documents for verification and the concerned person is liable to produce the documents.
- Any person who has committed an offence punishable under sub-section (1) or sub-section (2) of section 73, the commissioner of SGST/CGST can order to any SGST/CGST officer to arrest such person.
- If a person is arrested for any cognizable offence, any authorised officer can arrest a person and inform the grounds of arrest and produce him before the magistrate within the period of twenty four hours.
- In case of bail-able or non-cognizable offence, the assistant/deputy commissioner of the CGST/SGST can release the arrested person on bail or otherwise the officer who has the same power in police station to take in-charge of the cases.
- The above mentioned arrests can be carried out in accordance with the provision of the code of criminal procedure, 1973 (2 of 1974) relating to arrest.
- The CGST/SGST officer has the power to summon any person who he considers to produce the necessary documents or any evidence or any other thing in the inquiry.
- A summon may be for producing the documents or other things to specify the documents or the things to describe the possession of the documents or under the control of the person who got summoned.
- All person are summoned are bound to attend, either by an authorised representative or in person. The person summoned has to state the truth upon any subject which they are examined and produce the documents and other things as required.
- Exemption under section 132 and 133 of the code of civil procedure shall be applicable to requisition for attendance.
- The inquiries which are said before deemed to be judicial proceedings under the section 193 and 228 of the Indian penal code.
- Any SGST/CGST officer, who is authorised by the SGST/CGST commissioner, shall have access to any kind of business premises to inspect the documents, books of records, computer program, and software, and such other things which may be available at such premises in order to carry out audit, verification, scrutiny to safeguard the interest of revenue.
- Every person in charge of the premises under sub-section (1), on demand, make available to the officer under sub-section (1) or the comptroller and auditor general of India or the audit party who is deputed by the commissioner of SGST/CGST or the cost accountant or the chartered accountant nominated under section 50, as the cases may be
- The records which are recorded and maintained by the taxable person and declared to the SGST/CGST officer as prescribed;
- The Statement of Annual return which must be duly audited, it can be used whenever required;
- Cost or audit report under section 148.
- Income tax audit report under section 44AB of the income tax act;
- Trial balance or the equivalent statement;
- When such a demand is made, the scrutiny of the officer or the cost accountant or chartered accountant or the audit party within the reasonable time, not exceeding fifteen working days from the date such a demand is made or even it can be further exceeded by the cost accountant or the chartered accountant, as the case may be.
- The officers who are all engaged in collection of goods and service tax/ land revenue, the police men, customs officers and the village officers required assisting the CGST/SGST officers while during execution of the act.
- The central/ state government may require any other class of officers to assist and empower the CGST/SGST officer during execution of the act while called upon to do by the SGST/CGST commissioner.
- Tax authority shall not impose substantial penalties for the simple procedural requirements or the minor breaches in tax. Particularly there is no penalty for the mistake in documentation or omissions which are easily rectifiable and obviously made without any fraudulent intention or may be for gross negligence that can be necessary to serve merely as a warning;
Provided that the breach in tax will be considered less if the amount is less than five thousand rupees; and also the omission or mistake in documentation will be taken into consideration if there is a same error which is apparent in a record;
- The penalty imposes is purely depends on the facts and the circumstance and it commensurate with the severity and degree of the breach;
- The penalty will not be imposed before issuing the show cause notice and the opportunity of being heard;
- The tax authority need to ensure that when a penalty is imposed for breaching of the laws and regulations, procedural requirements, an explanation need to be provided therein to the concerned person like whom the penalty is imposed, nature of the breach , procedure or regulation under which the amount or range of the penalty been prescribed;
- When a person voluntarily discloses to the tax authority about the breaches, procedural requirement by himself prior to the discovery of breach by the legal authority, if this is a case, then the tax authority will mitigate the penalty amount while establishing on that issue. This will be considered as a potential mitigating factor.
- The provision of this section will not be applied in a case where the penalty prescribed under the act, either as a fixed percentage or a fixed sum.
- If any person aggrieved by the decision or order which has been passed against him by the adjudicating authority, may appeal to the prescribed first appellate authority;
- The commissioner of GST may call for and examine the record of any proceedings in which an adjudicating authority passed any decision or order under this act, direct any GST officer to subordinate him to apply to the first appellate authority for the determination of the points arising out of the said decision or order may specified in the commissioner of the GST in that order;
- The pursuance of an order under sub-section (2) the authorised officer makes an application to the first appellate authority , such application will be dealt with the FAA, if it were an appeal against the decision or order of the adjudicating authority related to the provision of the act;
- Every appeal should be filed within three months from the date on which the decision or order, appeal against is communicated to the commissioner of GST.
- The appellant was prevented by presenting the appeal by sufficient cause, then he will be allowed to present by extending one month of time period.
- Every appeal under the section will be in a prescribed form and a manner;
- The appeal shall not be filed under sub-section (1) unless the appellant has been deposited a sum equal to ten percent of the amount in disputes arising from the said order, in relation to which the appeal has been filed.
- The first appellate authority shall give an opportunity to the appellant of being heard;
- The first appellate authority, grants time to time if the sufficient cause is shown for the appeal and adjourn the hearing of the appeal and the reasons to be recorded in writing and adjournment shall be granted more than three times to a party during the appeal;
- The first appellate authority, at the hearing of an appeal allows an appellant to go into the grounds of appeal, if he is satisfied that the omission of the ground from the ground of appeal is unreasonable or not wilful.
- The authority after making the enquiry as per the necessity, pass such orders, as he thinks proper, modifying, confirming or annulling the decision or order appealed against:
- An order enhancing any fee or penalty or fine in lieu of confiscation or reducing the amount of refund or ITC will not be passed unless the appellant has given a reasonable opportunity of show cause against the proposed order;
- Provided further that the tax has not been paid or short paid or erroneously refunded or ITC been wrongly utilized or availed, no order requiring the appellant to pay such tax or ITC passed unless the appellant have given the notice against that order within the time frame which is specified under section 51.
- The order of the FAA in disposing of the appeal should be recorded in writing and thereon state the point for determination, decision and the reasons for the decision.
- The FAA, hear and decide the appeal within a period of one year from which it has been filed;
- While disposing the appeal, the first appellate authority need to communicate with the appellant and the adjudicating authority as well;
- A copy of the order which is from the first appellate authority will be sent to the jurisdictional commissioner of SGST or the authoritative person on this behalf and the jurisdictional commissioner of CGST or the authoritative person on this behalf;