Remission of Tax in case of deficiency in Quantity supplied under GST Regime
Provision in GST relating to Remission of Tax in case of deficiency in Quantity supplied
Govt of India has deleted the Section 11 from Revised Model GST law which was found in the Old Model GST Law , dealing with remission of Tax on Supplies in case of deficiency in quantity due to natural causes. Section 11 was read as follow in Old Model GST Law
11. Remission of tax on supplies found deficient in quantity
(1) The Central or a State Government may, by rules made under this sub-section, provide for remission of tax on such supplies which are found to be deficient in quantity due to any natural causes. (2) Any rules made under sub-section (1) may, having regard to the nature of the supply, fix the limit or limits of percentage beyond which no such remission shall be allowed.
Issue
There is no provisions in GST Law for quantifying deficiency in supply of Goods due to any natural causes.
Suggestion
It is suggested that following provision be inserted in GST Law :
” The Central or a State Government may as prescribed, provide for remission of tax on supplies of goods which are found to be deficient due to natural causes”
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