The Union Finance Minister Nirmala Sitaraman chaired the 50th meeting of the GST Council on 11th July 2023 at Vigyan Bhawan in New Delhi including Revenue Secretary, Sanjay Malhotra, CBIC chairman, Vivek Johri.
The GST Council has clarified the procedure for recovery of tax and interest in terms of Rule 88C(3) of Central Goods and Services Tax Rules (CGST), 2017.
The Rule 88C states about the manner of dealing with difference in liability reported in statements of outward supplies and that reported in return.
Further, the Rule 88C (3) of the CGST Rules mentioned that where any amount specified in the intimation referred to in sub-rule (1) remains unpaid within the period specified in that sub-rule and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be recoverable in accordance with the provisions of section 79.
On the recommendations of the 48th GST Council meeting held on 17.12.2022, the rule 88C was inserted in the CGST Rules, 2017 with effect from 26.12.2022 for system based intimation to the registered person in cases where the output tax liability in terms of FORM GSTR-1 of a registered person for any particular month exceeds the output tax liability disclosed by the said person in the return in FORM GSTR-3B for the said month by a specified threshold.
The Council has now recommended insertion of Rule 142B in the CGST Rules, 2017 and insertion of a FORM GST DRC-01D to provide for manner of recovery of the tax and interest in respect of the amount intimated under rule 88C which has not been paid and for which no satisfactory explanation has been furnished by the registered person.
Till now, the forms that matter under the Rule 88C are Form GST DRC-01B, Form GST DRC-03, Form GSTR-1 and Form GSTR-3. Now the GST council has recommended to insert Form GST DRC-01D.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
