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Proceedings For Recovery of Tax Under GST
Proceedings For Recovery of Tax Under GST
As per the provisions of recovery of tax in GST, if the amount payable by a taxable person, remains
unpaid, even after 3 months from the date of issuing the order for demand of tax, then the recovery of tax
under GST will be initiated. However, if the proper officer considers it urgent in the interest of revenue,
he may state reasons recording in writing, and direct the concerned taxpayer to make payment in a
reduced period as well. In any case, if the demand is not paid in the time specified, then the department
will initiate proceedings for recovery of tax in GST.
Properties are generally treated as a temporary security for the purpose of provisional attachment,
especially when there is a strong suspicion that the defaulter will abscond. That is the reason why the
provision has been made to include bank accounts also into such property and include them as part of
provisional attachment of property to protect revenue.
Due Amount is Increased – In this case, the commissioner will serve another notice of demand
for the difference amount. The old amount will anyway be covered by the notice issued earlier.
Due Amount is Decreased – In this case, the commissioner will inform the taxpayer about the
reduction, and also apprise the authority with whom the recovery of tax under GST is pending.
No new notice will be issued in this case.