CBIC issues fresh norm for recovery of GST dues

New Delhi, July 12, 2024

Synopsis
The CBIC issues a new guideline for taxpayers to address outstanding dues until the GSTAT is functional. Payments can be made via electronic liability register with an undertaking to avoid recovery proceedings.

The Central Board of Indirect Taxes and Customs (CBIC) has issued a fresh guideline to address the recovery of outstanding dues till the Goods and Services Tax Appellate Tribunal (GSTAT) becomes functional.

Taxpayers can escape the tax recovery process by paying the pre-deposit amount via their electronic liability register and filing an undertaking with the jurisdictional proper officer. The circular issued late Thursday will ensure that taxpayers are not forced into recovery proceedings due to the absence of the Tribunal. The apex body of indirect taxes in India has introduced a mechanism to adjust payments made through FORM GST DRC-03 towards the pre-deposit requirements, which will be available on the common portal. Taxpayers once after making payment, can inform the proper officer, who have to delay recovery proceedings. "The taxpayer also needs to file an undertaking/ declaration with the jurisdictional proper officer that he will file appeal against the said order of the appellate authority before the Appellate Tribunal, as and when it comes into operation, within the timelines mentioned in section 112 of the CGST Act," the circular said. In absence of deposits, the recovery proceedings will commence as per the Central Goods and Services Tax Act, the circular says.

Earlier in June, the CBIC had said the officers should not recover GST dues before the stipulated three months of serving of demand order. Only when the person does not pay the amount within three months from the date of service of such order, the tax officer can initiate recovery proceedings.

[The Economic Times]