Powers of Deputy or Assistant Commissioner of Central Tax under GST

By | May 12, 2018
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(Last Updated On: May 12, 2018)

Contents

Deputy or Assistant Commissioner of Central Tax

Powers of Deputy or Assistant Commissioner of Central Tax under GST

i. Sub-sections (5), (6), (7) and (10) of Section 54 of CGST Act 2017

Power to make Refund order

Relevant Section 54(5) of CGST Act 2017

 If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57 of CGST Act 2017 .

Power to make Provisional Refund order for zero Rated supply

Relevant Section 54(6) of CGST Act 2017

Notwithstanding anything contained in section 54(5) of CGST Act 2017 , the proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent of the total amount so claimed, excluding the amount of input tax credit provisionally accepted, in such manner and subject to such conditions, limitations and safeguards as may be prescribed and thereafter make an order under section 54(5) of CGST Act 2017  for final settlement of the refund claim after due verification of documents furnished by the applicant.

Power to issue Refund Order

Relevant Section 54(7) of CGST Act 2017

The proper officer shall issue the order under section 54(5) of CGST Act 2017  within sixty days from the date of receipt of application complete in all respects.

Power to withhold or deduct refund if person defaulted in filing return or tax payment

Relevant Section 54(10) of CGST Act 2017

Where any refund is due under sub-section (3)to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the proper officer may—

(a)withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may be;
(b)deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable person is liable to pay but which remains unpaid under this Act or under the existing law.

Explanation.—For the purposes of this sub-section, the expression “specified date” shall mean the last date for filing an appeal under this Act.

ii. Sub-sections (1), (2) and (3) of Section 60 of CGST Act 2017

Power to allow payment of tax on provisional basis

Relevant Section 60(1) of CGST Act 2017

Subject to the provisions of Section 60(2) of CGST Act 2017 , where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.

Power to take surety or security before allowing payment of tax on provisional basis

Relevant Section 60(2) of CGST Act 2017

The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.

Power to pass the final assessment order

Relevant Section 60(3) of CGST Act 2017

The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under section 60 (1) of CGST Act 2017, pass the final assessment order after taking into account such information as may be required for finalizing the assessment:

Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years.

iii. Section 63 of CGST Act 2017

Power to make Assessment of unregistered persons.

Relevant Section 63 of CGST Act 2017 

Notwithstanding anything to the contrary contained in section 73 of CGST Act 2017 or section 74 of CGST Act 2017, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under Section 29 (2) of CGST Act 2017 but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 of CGST Act 2017  for furnishing of the annual return for the financial year to which the tax not paid relates:

Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.

iv. Sub-section (1) of Section 64 of CGST Act 2017

Power to make Summary assessment

Relevant Section 64(1) of CGST Act 2017 

The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:

Provided that where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section.

v. Sub-section (6) of Section 65 of CGST Act 2017

Power to report and inform finding of Audit

Relevant Section 65(6) of CGST Act 2017 

 On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings.

vi. Sub-sections (1), (2), (3), (5), (6), (7), (9), (10) of Section 74 of CGST Act 2017

Power to serve notice if tax not paid, Short Paid or erroneously refunded or ITC wrongly claimed or availed

Relevant Section 74(1) of CGST Act 2017 

Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice.

Power to issue notice if tax not paid, Short Paid or erroneously refunded or ITC wrongly claimed or availed

Relevant Section 74(2) of CGST Act 2017 

The proper officer shall issue the notice under section 74(1) of CGST Act 2017 at least six months prior to the time limit specified in section 74 (10) of CGST Act 2017  for issuance of order.

Power to serve statement  if tax not paid, Short Paid or erroneously refunded or ITC wrongly claimed or availed for other period

Relevant Section 74(3) of CGST Act 2017 

Where a notice has been issued for any period under section 74(1) of CGST Act 2017  the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under section 74(1) of CGST Act 2017 on the person chargeable with tax.

Power to take information in writing regarding tax payments before service of Notice

Relevant Section 74(5) of CGST Act 2017 

The person chargeable with tax may, before service of notice under section 74(1) of CGST Act 2017  pay the amount of tax along with interest payable under section 50 of CGST Act 2017 and a penalty equivalent to fifteen per cent of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.

Power of not to serve notice if  information in writing is received regarding tax payments before service of Notice

Relevant Section 74(6) of CGST Act 2017 

The proper officer, on receipt of such information, shall not serve any notice under section 74(1) of CGST Act 2017 , in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.

Power to issue Notice if information received for short tax payments before service of Notice

Relevant Section 74(7) of CGST Act 2017 

Where the proper officer is of the opinion that the amount paid under section 74(5) of CGST Act 2017 falls short of the amount actually payable, he shall proceed to issue the notice as provided for in section 74(1) of CGST Act 2017 in respect of such amount which falls short of the amount actually payable.

Power to determine tax ,  interest and penalty and issue order

Relevant Section 74(9) of CGST Act 2017 

The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order.

Power to take time to issue order if tax not paid, Short Paid or erroneously refunded or ITC wrongly claimed or availed for other period

Relevant Section 74(10) of CGST Act 2017 

The proper officer shall issue the order under Section 74(9) of CGST Act 2017  within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous refund.

vii. Sub-sections (2), (3), (6) and (8) of Section 76 of CGST Act 2017

Power to Serve Show cause Notice of tax and penalty if Tax collected but not paid to Government.

Relevant Section 76(2) of CGST Act 2017 

Where any amount is required to be paid to the Government under Section 76(1) of CGST Act 2017 , and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act.

Power to determine tax and penalty if Tax collected but not paid to Government.

Relevant Section 76(3) of CGST Act 2017 

The proper officer shall, after considering the representation, if any, made by the person on whom the notice is served under Section 76(2) of CGST Act 2017 , determine the amount due from such person and thereupon such person shall pay the amount so determined.

Power to take time to issue order if Tax collected but not paid to Government.

Relevant Section 76(6) of CGST Act 2017 

 The proper officer shall issue an order within one year from the date of issue of the notice.

Power to set out facts in order if Tax collected but not paid to Government.

Relevant Section 76(8) of CGST Act 2017 

The proper officer, in his order, shall set out the relevant facts and the basis of his decision.

viii. Sub-section (1) of Section 79 of CGST Act 2017

Power to Recover tax.

Relevant Section 79(1) of CGST Act 2017 

Where any amount payable by a person to the Government under any of the provisions of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes, namely:—

(a)the proper officer may deduct or may require any other specified officer to deduct the amount so payable from any money owing to such person which may be under the control of the proper officer or such other specified officer;
(b)the proper officer may recover or may require any other specified officer to recover the amount so payable by detaining and selling any goods belonging to such person which are under the control of the proper officer or such other specified officer;
(c)(i) the proper officer may, by a notice in writing, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the Government either forthwith upon the money becoming due or being held, or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount;
(ii) every person to whom the notice is issued under sub-clause (i) shall be bound to comply with such notice, and in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary;
(iii) in case the person to whom a notice under sub-clause (i) has been issued, fails to make the payment in pursuance thereof to the Government, he shall be deemed to be a defaulter in respect of the amount specified in the notice and all the consequences of this Act or the rules made thereunder shall follow;
(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or revoke such notice or extend the time for making any payment in pursuance of the notice;
(v) any person making any payment in compliance with a notice issued under sub-clause (i) shall be deemed to have made the payment under the authority of the person in default and such payment being credited to the Government shall be deemed to constitute a good and sufficient discharge of the liability of such person to the person in default to the extent of the amount specified in the receipt;
(vi) any person discharging any liability to the person in default after service on him of the notice issued under sub-clause (i) shall be personally liable to the Government to the extent of the liability discharged or to the extent of the liability of the person in default for tax, interest and penalty, whichever is less;
(vii) where a person on whom a notice is served under sub-clause (i) proves to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he did not hold any money for or on account of the person in default, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the said person or be held for or on account of such person, nothing contained in this section shall be deemed to require the person on whom the notice has been served to pay to the Government any such money or part thereof;
(d)the proper officer may, in accordance with the rules to be made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person;
(e)the proper officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business or to any officer authorised by the Government and the said Collector or the said officer, on receipt of such certificate, shall proceed to recover from such person the amount specified thereunder as if it were an arrear of land revenue;
(f)notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the proper officer may file an application to the appropriate Magistrate and such Magistrate shall proceed to recover from such person the amount specified thereunder as if it were a fine imposed by him.

ix. Section 123 of CGST Act 2017

Power to impose penalty for failure to furnish information return.

Relevant Section 123 of CGST Act 2017 

If a person who is required to furnish an information return under section 150 of CGST act 2017    fails to do so within the period specified in the notice issued under section 150(3) of CGST act 2017, the proper officer may direct that such person shall be liable to pay a penalty of one hundred rupees for each day of the period during which the failure to furnish such return continues:

Provided that the penalty imposed under this section shall not exceed five thousand rupees.

x. Section 127 of CGST Act 2017

Power to impose penalty in certain cases. 

Relevant Section 127 of CGST Act 2017 

Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under  section 62 of CGST Act 2017 ( Assessment of non-filers of returns) or Section 63 of CGST Act 2017( Assessment of unregistered persons.) or Section 64 of CGST Act 2017 (Summary assessment in certain special cases)  or Section 73 of CGST Act 2017 Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts) or Section 74 of CGST Act 2017Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.) or Section 129 of CGST Act 2017. (Detention, seizure and release of goods and conveyances in transit.) or Section 130 of CGST Act 2017.( Confiscation of goods or conveyances and levy of penalty.), he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.

xi. Sub-section (3) of Section 129 of CGST Act 2017

Power to issue notice and pass order of detention, seizure and release of goods and conveyances in transit.

Relevant Section 129(3) of CGST Act 2017 

The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a)or clause (b)or clause (c) [ of Section 129(1) of CGST Act 2017 ]

xii. Sub- sections (6) and (7) of Section 130 of CGST Act 2017

Power to take control of confiscated goods or conveyances and take help of Police

Relevant Section 130(6) of CGST Act 2017

The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession.

Power to dispose of confiscated goods or conveyances 

Relevant Section 130(7) of CGST Act 2017

The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government.

xiii. Sub- section (1) of Section 142 of CGST Act 2017

Power to satisfy if goods sold before GST and returned after GST Act by unregistered person

Relevant Section 142(1) of CGST Act 2017 

Where any goods on which duty, if any, had been paid under the existing law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the duty paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer:

Provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply.

xiv. Sub-rule (2) of Rule 82 of CGST Rules 2017

Power to take details of inward supplies of persons having Unique Identity Number

Relevant Rule 82(2) of CGST rules 2017

 Every person who has been issued a Unique Identity Number for purposes other than refund of the taxes paid shall furnish the details of inward supplies of taxable goods or services or both as may be required by the proper officer in FORM GSTR-11.

xv. Sub-rule (4) of Rule 86 of CGST Rules 2017

Power to re credit electronic credit ledger if refund rejected

Relevant Rule 86(4) of CGST rules 2017 

If the refund so filed [ of Electronic Credit Ledger ]  is rejected, either fully or partly, the amount debited under Rule 86(3) of CGST rules 2017 , to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03.

xvi. Explanation to Rule 86 of CGST Rules 2017

Power to take undertaking that person shall not file appeal if refund claim of Electronic Credit Ledger is rejected

Relevant Explanation of  Rule 86 of CGST rules 2017 

Explanation.—For the purposes of this rule, it is hereby clarified that a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not file an appeal.

xvii. Sub-rule (11) of Rule 87 of CGST Rules 2017

Power to  re credit Electronic Cash Ledger if refund rejected

Relevant Rule 87(11) of CGST rules 2017 

If the refund so claimed is rejected, either fully or partly, the amount debited under Rule 87 (10) of CGST rules 2017  to the extent of rejection, shall be credited to the electronic cash ledger by the proper officer by an order made in FORM GST PMT-03.

xviii. Explanation 2 to Rule 87 of CGST Rules 2017

Power to take undertaking that person shall not file appeal if refund claim of Electronic Cash Ledger is rejected

Relevant Explanation 2 to Rule 87  of CGST rules 2017 

Explanation 2.—For the purposes of this rule, it is hereby clarified that a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not file an appeal.

xix. Sub-rules (2) and (3) of Rule 90 of CGST Rules 2017

Power to scrutinize application of refund from electronic cash ledger

Relevant Rule 90(2) of CGST rules 2017

The application for refund, other than claim for refund from electronic cash ledger, shall be forwarded to the proper officer who shall, within a period of fifteen days of filing of the said application, scrutinize the application for its completeness and where the application is found to be complete in terms of sub-rules (2), (3) and (4) of rule 89 of CGST Rules 2017 , an acknowledgement in FORM GST RFD-02 shall be made available to the applicant through the common portal electronically, clearly indicating the date of filing of the claim for refund and the time period specified in sub-section (7) of section 54 of CGST Act 2017 shall be counted from such date of filing.

Power to communicate deficiencies of application of refund from electronic cash ledger

Relevant Rule 90(3) of CGST rules 2017

Where any deficiencies are noticed, the proper officer shall communicate the deficiencies to the applicant in FORM GST RFD-03 through the common portal electronically, requiring him to file a fresh refund application after rectification of such deficiencies.

xx. Sub-rules (2) and (3) of Rule 91 of CGST Rules 2017

Power to make order of refund from electronic cash ledger

Relevant Rule 91(2) of CGST rules 2017

The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and on being prima facie satisfied that the amount claimed as refund under Rule 91(1) of CGST rules 2017 is due to the applicant in accordance with the provisions of  section 54 (6) of CGST Act 2017, shall make an order in FORM GST RFD-04, sanctioning the amount of refund due to the said applicant on a provisional basis within a period not exceeding seven days from the date of the acknowledgement under  Rule 90(1) of CGST rules 2017  or Rule 90(2) of CGST rules 2017 

Power to issue payment advice of refund from electronic cash ledger

Relevant Rule 91(3) of CGST rules 2017

The proper officer shall issue a payment advice in FORM GST RFD-05 for the amount sanctioned under  Rule 91(2) of CGST rules 2017 and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.

xxi. Sub-rules(1), (2), (3), (4) and (5) of Rule 92 of CGST Rules 2017

Power to sanction refund Order

Relevant Rule 92(1) of CGST rules 2017

Where, upon examination of the application, the proper officer is satisfied that a refund under section 54 (5) of CGST Act 2017,  is due and payable to the applicant, he shall make an order in FORM GST RFD-06 sanctioning the amount of refund to which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a provisional basis under  section 54 (6) of CGST Act 201 , amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable:

Provided that in cases where the amount of refund is completely adjusted against any outstanding demand under the Act or under any existing law, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD-07.

Power to withholding refund 

Relevant Rule 92(2) of CGST rules 2017

Where the proper officer or the Commissioner is of the opinion that the amount of refund is liable to be withheld under the provisions of  section 54 (10) of CGST Act 2017,or, as the case may be, section 54 (11) of CGST Act 2017, he shall pass an order in Part B of FORM GST RFD-07 informing him the reasons for withholding of such refund.

Power to issue Notice , Sanction or Reject refund 

Relevant Rule 92(3) of CGST rules 2017

Where the proper officer is satisfied, for reasons to be recorded in writing, that the whole or any part of the amount claimed as refund is not admissible or is not payable to the applicant, he shall issue a notice in FORM GST RFD-08 to the applicant, requiring him to furnish a reply in FORM GST RFD-09 within a period of fifteen days of the receipt of such notice and after considering the reply, make an order in FORM GST RFD-06 sanctioning the amount of refund in whole or part, or rejecting the said refund claim and the said order shall be made available to the applicant electronically and the provisions of Rule 92(1) of CGST rules 2017  shall, mutatis mutandis, apply to the extent refund is allowed:

Provided that no application for refund shall be rejected without giving the applicant an opportunity of being heard.

Power to issue payment advice of refund 

Relevant Rule 92(4) of CGST rules 2017

Where the proper officer is satisfied that the amount refundable under Rule 92(1) of CGST rules 2017   or Rule 92(2) of CGST rules 2017 is payable to the applicant under section 54 (8) of CGST Act 2017 , he shall make an order in FORM GST RFD-06 and issue a payment advice in FORM GST RFD-05 for the amount of refund and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.

Power to credit refund  to Consumer Welfare Fund.

Relevant Rule 92(5) of CGST rules 2017

Where the proper officer is satisfied that the amount refundable under Rule 92(1) of CGST rules 2017 or Rule 92(2) of CGST rules 2017   is not payable to the applicant under section 54 (8) of CGST Act 2017  , he shall make an order in FORM GST RFD-06 and issue an advice in FORM GST RFD-05, for the amount of refund to be credited to the Consumer Welfare Fund.

xxii. Explanation to Rule 93 of CGST Rules 2017

Power to take undertaking in writing if appeal is not to be filed by claimant

Relevant Rule 93 of CGST rules 2017

Explanation.—For the purposes of this rule, a refund shall be deemed to be rejected, if the appeal is finally rejected or if the claimant gives an undertaking in writing to the proper officer that he shall not file an appeal.

xxiii. Rule 94 of CGST Rules 2017

Power to sanction interest on delayed refunds

Relevant Rule 94 of CGST rules 2017

Where any interest is due and payable to the applicant under section 56 of CGST Act 2017, the proper officer shall make an order along with a payment advice in FORM GST RFD-05, specifying therein the amount of refund which is delayed, the period of delay for which interest is payable and the amount of interest payable, and such amount of interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.

xxiv. Sub-rule (6) of Rule 96 of CGST Rules 2017

Power to pass order for withhold of  refund of integrated tax of goods or services exported out of India

Relevant Rule 96(6) of CGST rules 2017

Upon transmission of the intimation under Rule 96(5) of CGST rules 2017 , the proper officer of central tax or State tax or Union territory tax, as the case may be, shall pass an order in Part B of FORM GST RFD-07.

xxv. Sub-rule (2) of Rule 97 of CGST Rules 2017

Power to pass order for payment of refund to be paid from Consumer Welfare Fund

Relevant Rule 97(2) of CGST rules 2017

Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund.

xxvi. Sub-rule (2), (3), (4), (5) and (7) of Rule 98 of CGST Rules 2017

Power to issue Notice for taking information for Provisional Assessment

Relevant Rule 98(2) of CGST rules 2017

The proper officer may, on receipt of the application under Rule 98(1) of CGST rules 2017 , issue a notice in FORM GST ASMT-02 requiring the registered person to furnish additional information or documents in support of his request and the applicant shall file a reply to the notice in FORM GST ASMT-03, and may appear in person before the said officer if he so desires.

Power to issue order for Provisional Assessment

Relevant Rule 98(3) of CGST rules 2017

 The proper officer shall issue an order in FORM GST ASMT-04 allowing the payment of tax on a provisional basis indicating the value or the rate or both on the basis of which the assessment is to be allowed on a provisional basis and the amount for which the bond is to be executed and security to be furnished not exceeding twenty five per cent of the amount covered under the bond.

Power to take bond for Provisional Assessment

Relevant Rule 98(4) of CGST rules 2017

The registered person shall execute a bond in accordance with the provisions of section 60(2) of CGST Act 2017  in FORM GST ASMT-05 along with a security in the form of a bank guarantee for an amount as determined under Rule 98(3) of CGST rules 2017:

Provided that a bond furnished to the proper officer under the State Goods and Services Tax Act or Integrated Goods and Services Tax Act shall be deemed to be a bond furnished under the provisions of the Act and the rules made thereunder.

Explanation.—For the purposes of this rule, the expression “amount” shall include the amount of integrated tax, central tax, State tax or Union territory tax and cess payable in respect of the transaction.

Power to ask for information and records for finalization  of assessment

Relevant Rule 98(5) of CGST rules 2017

The proper officer shall issue a notice in FORM GST ASMT-06, calling for information and records required for finalization of assessment under section 60(3) of CGST Act 2017   and shall issue a final assessment order, specifying the amount payable by the registered person or the amount refundable, if any, in FORM GST ASMT-07.

Power to release the security and Issue Order

Relevant Rule 98(7) of CGST rules 2017

The proper officer shall release the security furnished under Rule 98(4) of CGST rules 2017  , after ensuring that the applicant has paid the amount specified in Rule 98(5) of CGST rules 2017  and issue an order in FORM GST ASMT–09 within a period of seven working days from the date of the receipt of the application under Rule 98(6) of CGST rules 2017.

xxvii. Sub-rule (2) of Rule 100 of CGST Rules 2017

Power to issue notice for best judgment assessment

Relevant Rule 100(2) of CGST rules 2017

The proper officer shall issue a notice to a taxable person in accordance with the provisions of section 63 of CGST Act 2017 (Assessment of unregistered persons.)  in FORM GST ASMT-14 containing the grounds on which the assessment is proposed to be made on best judgment basis and after allowing a time of fifteen days to such person to furnish his reply, if any, pass an order in FORM GST ASMT-15.

xxviii. Sub-rules (2), (3), (4) and (5) of Rule  101 of CGST Rules 2017

Power to issue notice for Audit

Relevant Rule 101(2) of CGST rules 2017

Where it is decided to undertake the audit of a registered person in accordance with the provisions of Section 65 of CGST Act 2017( Audit by tax authorities), the proper officer shall issue a notice in FORM GST ADT-01 in accordance with the provisions of Section 65 (3) of CGST Act 2017 

Power to verify the documents and returns for Audit

Relevant Rule 101(3) of CGST rules 2017

The proper officer authorised to conduct audit of the records and the books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the documents on the basis of which the books of account are maintained and the returns and statements furnished under the provisions of the Act and the rules made thereunder, the correctness of the turnover, exemptions and deductions claimed, the rate of tax applied in respect of the supply of goods or services or both, the input tax credit availed and utilised, refund claimed, and other relevant issues and record the observations in his audit notes.

Power to inform discrepancies and finalise finding  for Audit

Relevant Rule 101(4) of CGST rules 2017

The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and the said person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply furnished.

Power to inform finding  of Audit

Relevant Rule 101(5) of CGST rules 2017

On conclusion of the audit, the proper officer shall inform the findings of audit to the registered person in accordance with the provisions of Section 65 (6) of CGST Act 2017   in FORM GST ADT-02.

xxix. Rule 143 of CGST Rules 2017

Power to Recover by deduction from any money owed.

Relevant Rule 143 of CGST rules 2017

Where any amount payable by a person (hereafter referred to in this rule as “the defaulter”) to the Government under any of the provisions of the Act or the rules made thereunder is not paid, the proper officer may require, in FORM GST DRC-09, a specified officer to deduct the amount from any money owing to such defaulter in accordance with the provisions of section 79(1)(a) of  CGST Act 2017.

Explanation.—For the purposes of this rule, “specified officer” shall mean any officer of the Central Government or a State Government or the Government of a Union territory or a local authority, or of a Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority.

xxx. Sub-rules (1), (3), (4), (5), (6) and (7) of Rule 144 of CGST Rules 2017

Power to recover dues by sale of goods

Relevant Rule 144(1) of CGST rules 2017

Where any amount due from a defaulter is to be recovered by selling goods belonging to such person in accordance with the provisions of  section 79(1)(b) of  CGST Act 2017 , the proper officer shall prepare an inventory and estimate the market value of such goods and proceed to sell only so much of the goods as may be required for recovering the amount payable along with the administrative expenditure incurred on the recovery process.

Power to sale perishable or hazardous goods under custody

Relevant Rule 144(3) of CGST rules 2017

The last day for submission of bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice referred to in Rule 144(2) of CGST rules 2017

Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.

Power to specify the amount of pre-bid deposit for participation in auction

Relevant Rule 144(4) of CGST rules 2017

The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.

Power to issue notice to the successful bidder for payment and transfer of possession of goods

Relevant Rule 144(5) of CGST rules 2017

The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12.

Power to cancel the process of auction and release the goods

Relevant Rule 144(6) of CGST rules 2017

Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under Rule 144(2) of CGST rules 2017, the proper officer shall cancel the process of auction and release the goods.

Power to cancel auction and proceed for re-auction where no bid is received / Low bids

Relevant Rule 144(7) of CGST rules 2017

The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.

xxxi. Sub-rules (1) and (2) of Rule 145 of CGST Rules 2017

Power to recover from a third person.

Relevant Rule 145(1) of CGST rules 2017

The proper officer may serve upon a person referred to in section 79(1)(c) of CGST  Act 2017 (hereafter referred to in this rule as “the third person”), a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice.

Power to issue certificate for liability discharged by  third person.

Relevant Rule 145(2) of CGST rules 2017

Where the third person makes the payment of the amount specified in the notice issued under Rule 145(1) of CGST rules 2017 , the proper officer shall issue a certificate in FORM GST DRC-14 to the third person clearly indicating the details of the liability so discharged.

xxxii. Rule 146 of CGST Rules 2017

Power to recover through execution of a decree, etc.

Relevant Rule 146 of CGST rules 2017

Where any amount is payable to the defaulter in the execution of a decree of a civil court for the payment of money or for sale in the enforcement of a mortgage or charge, the proper officer shall send a request in FORM GST DRC-15 to the said court and the court shall, subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), execute the attached decree, and credit the net proceeds for settlement of the amount recoverable.

xxxiii. Sub-rules (1), (2), (3), (5), (6), (7), (8), (10),(11), (12), (14) and (15) of Rule 147 of CGST Rules 2017

Power of attachment of movable and immovable property belonging to defaulter

Relevant Rule 147(1) of CGST rules 2017

The proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC-16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due:

Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151 of CGST Rules  2017.

Power to send copy of attachment order of movable and immovable property belonging to defaulter to authorities for encumbrance

Relevant Rule 147(2) of CGST rules 2017

The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect.

Power to affix attachment order on immovable property and seize movable property belonging to defaulter to authorities for encumbrance

Relevant Rule 147(3) of CGST rules 2017

Where the property subject to the attachment or distraint under Rule 147(1) of CGST rules 2017  is—

(a)an immovable property, the order of attachment or distraint shall be affixed on the said property and shall remain affixed till the confirmation of sale;
(b)a movable property, the proper officer shall seize the said property in accordance with the provisions of Chapter XIV of the Act and the custody of the said property shall either be taken by the proper officer himself or an officer authorised by him.

Power to sell negotiable instrument or share through broker

Relevant Rule 147(5) of CGST rules 2017

Notwithstanding anything contained in the provision of this Chapter, where the property to be sold is a negotiable instrument or a share in a corporation, the proper officer may, instead of selling it by public auction, sell such instrument or a share through a broker and the said broker shall deposit to the Government so much of the proceeds of such sale, reduced by his commission, as may be required for the discharge of the amount under recovery and pay the amount remaining, if any, to the owner of such instrument or a share

Power to specify the amount of pre-bid deposit for auction

Relevant Rule 147(6) of CGST rules 2017

The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders or, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.

Power to sell perishable or hazardous goods under custody

Relevant Rule 147(7) of CGST rules 2017

The last day for the submission of the bid or the date of the auction shall not be earlier than fifteen days from the date of issue of the notice referred to in Rule 147(4) of CGST rules 2017:

Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.

Power to postpone the sale of attached property

Relevant Rule 147(8) of CGST rules 2017

Where any claim is preferred or any objection is raised with regard to the attachment or distraint of any property on the ground that such property is not liable to such attachment or distraint, the proper officer shall investigate the claim or objection and may postpone the sale for such time as he may deem fit.

Power to release attached property wholly or partly

Relevant Rule 147(10) of CGST rules 2017

Where, upon investigation, the proper officer is satisfied that, for the reason stated in the claim or objection, such property was not, on the said date, in the possession of the defaulter or of any other person on his behalf or that, being in the possession of the defaulter on the said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or distraint.

Power to reject claim on attached property 

Relevant Rule 147(11) of CGST rules 2017

Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction.

Power to issue notice to successful bidder of attached property  to make payment and issue certificate

Relevant Rule 147(12) of CGST rules 2017

The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12 specifying the details of the property, date of transfer, the details of the bidder and the amount paid and upon issuance of such certificate, the rights, title and interest in the property shall be deemed to be transferred to such bidder:

Provided that where the highest bid is made by more than one person and one of them is a co-owner of the property, he shall be deemed to be the successful bidder.

Power to cancel the process of auction and release the goods.

Relevant Rule 147(14) of CGST rules 2017

Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under Rule 147(4) of CGST rules 2017 , the proper officer shall cancel the process of auction and release the goods.

Power to cancel auction and re-auction where no bid is received / Low bid for attached property

Relevant Rule 147(15) of CGST rules 2017

The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.

 

xxxiv. Sub-rules(1),(2) and (3) of Rule 151 of CGST Rules 2017

Power of attachment of debts and shares, etc.

Relevant Rule 151 (1) of CGST rules 2017

A debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any court shall be attached by a written order in FORM GST DRC-16 prohibiting—

(a)in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof until the receipt of a further order from the proper officer;
(b)in the case of a share, the person in whose name the share may be standing from transferring the same or receiving any dividend thereon;
(c)in the case of any other movable property, the person in possession of the same from giving it to the defaulter.

Power to affix copy of attachment of debts and shares, etc.

Relevant Rule 151 (2) of CGST rules 2017

A copy of such order shall be affixed on some conspicuous part of the office of the proper officer, and another copy shall be sent, in the case of debt, to the debtor, and in the case of shares, to the registered address of the corporation and in the case of other movable property, to the person in possession of the same.

Power to affix copy of attachment of debts and shares, etc.

Relevant Rule 151 (3) of CGST rules 2017

A debtor, prohibited under Rule 151 (1)(a) of CGST rules 2017  , may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter.

xxxv. Rule 152 of CGST Rules 2017

Power of attachment of property in custody of courts or Public Officer.

Relevant Rule 152 of CGST rules 2017

 Where the property to be attached is in the custody of any court or Public Officer, the proper officer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable.

xxxvi. Rule 153 of CGST Rules 2017

Power of attachment of interest in partnership.

Relevant Rule 153 of CGST rules 2017

Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, and direct accounts and enquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require.

The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same.

xxxvii. Rule 155 of CGST Rules 2017

Power of Recovery through land revenue authority.

Relevant Rule 155 of CGST rules 2017

Where an amount is to be recovered in accordance with the provisions of Section 79(1)(e) of CGST Act 2017 , the proper officer shall send a certificate to the Collector or Deputy Commissioner of the district or any other officer authorised in this behalf in FORM GST DRC-18 to recover from the person concerned, the amount specified in the certificate as if it were an arrear of land revenue.

 

xxxviii. Rule 156 of CGST Rules 2017

Power to recover through court.

Relevant Rule 156 of CGST rules 2017

Where an amount is to be recovered as if it were a fine imposed under the Code of Criminal Procedure, 1973, the proper officer shall make an application before the appropriate Magistrate in accordance with the provisions of Section 79(1)(f) of CGST Act 2017  in FORM GST DRC-19 to recover from the person concerned, the amount specified thereunder as if it were a fine imposed by him.

 

Refer CBE&C circular No. 3/3/2017-GST dated 5-7-2017 [State Government will prescribe ‘proper officer’ for purpose of SGST in the respective State].

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