Kerala GST Dept issues Guidelines for Non-Issuance of Notices in cases of Voluntary Compliance

Circular No. 06/2024 dated April 06, 2024, introducing guidelines for the non-issuance of notices in cases of voluntary compliance
Kerala GST Dept - Guidelines - Non-Issuance - Notices - Voluntary Compliance - taxscan

The Kerala GST Department has recently released Circular No. 06/2024 dated April 06, 2024, introducing new guidelines regarding the non-issuance of notices for voluntary compliance under Sections 73 and 74 of the Kerala Goods and Services Tax Act, 2017.

Voluntary Compliance Option

Taxpayers now have the opportunity to fulfill their tax obligations voluntarily before formal notice issuance. This means that if a taxpayer, whether through self-ascertainment or as per the proper officer’s ascertainment, identifies additional tax liability, they can choose to settle these dues along with applicable interest under section 50 of the Kerala State GST Act, 2017.

Additionally, a reduced penalty of fifteen percent of the unpaid tax is applicable when payment is made under Section 74(5) of the Kerala GST Act, 2017.

Relevant Provisions

The circular elucidates the relevant provisions of Section 73 and 74 of the Kerala Goods and Services Tax Act, 2017, outlining the procedures to be followed by the person chargeable with tax and the proper officer in instances of voluntary compliance.

Detailed Breakdown of Payments

In cases of self-ascertainment, the person chargeable with tax must provide a detailed breakdown of the amounts paid, including tax, interest, and penalty. Similar requirements apply to scenarios involving incorrect availing or utilization of Input Tax Credit, as well as erroneous refunds received.

Formal Submissions

The circular specifies that submissions regarding the detailed breakup of payments can be made via FORM GST DRC-03 on the common portal. In cases where these details are not provided in the form, the proper officer reserves the right to request the necessary information through a letter.

Issuance of Notices

The circular delineates the circumstances under which a notice should or should not be issued in cases of voluntary payment, as well as in instances where there is a shortfall in voluntary payment.

Adherence to Provisions

Furthermore, it emphasizes adherence to the provisions of sub-section (11) in all cases falling under Section 73 of the Kerala GST Act, 2017, where applicable.

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