CBIC issues Guidelines for recovery of GST dues in Absence of GSTAT [Read Circular]

The Central Board of Indirect Taxes and Customs (CBIC) has issued a new circular, No. 224/18/2024-GST, detailing guidelines for the recovery of outstanding dues under the Central Goods and Services Tax (CGST) Act.

The circular clarifies that taxpayers, who wish to appeal against an order by the appellate authority and need to make a pre-deposit as per Section 112 of the CGST Act, can do so through the Electronic Liability Register (ELL). This provision ensures that taxpayers are not forced into recovery proceedings due to the absence of the Tribunal.

Until the GST Appellate Tribunal becomes operational, the circular allows taxpayers to pay the pre-deposit amount via their electronic liability register and file an undertaking/declaration with the jurisdictional proper officer. This measure provides a stay on the recovery of the remaining demand amount.

The CBIC has introduced a mechanism to adjust payments made through FORM GST DRC-03 towards the pre-deposit requirements. This adjustment can be claimed through a new FORM GST DRC-03A, which will be available on the common portal.

Taxpayers who have inadvertently made payments through FORM GST DRC-03 instead of the appropriate register can inform the proper officer. The officer is instructed to delay recovery proceedings until the functionality for FORM GST DRC-03A is available on the portal.

Taxpayers are required to file an application in FORM GST DRC-03A once it becomes available. If they fail to do so, or do not comply with the new guidelines, recovery proceedings will commence as per the Central Goods and Services Tax Act.

The CBIC has requested that suitable trade notices be issued to disseminate the contents of this circular. They also welcome feedback and reports of difficulties in implementing these instructions to ensure smooth compliance.

This circular addresses the concerns raised by trade and field formations regarding the recovery process in cases where the first appellate authority has confirmed the demand, but the appeal could not be filed due to the non-constitution of the GST Appellate Tribunal.

To Read the full text of the Order CLICK HERE

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