NOTIFICATION NO 9/2023 CENTRAL TAX Time limit for Passing Assessment order u/s 73(5) Extended for FY 2017-18 , FY 2018-19 and FY 2019-20
NOTIFICATION NO. 9/2023- CENTRAL TAX [S.O.1564(E)/F. NO. CBIC-20013/1/2023-GST], DATED 31-3-2023
In exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union territory Goods and Services Tax Act, 2017 (14 of 2017) and in partial modification of the notifications of the Government of India, Ministry of Finance (Department of Revenue), No. 35/2020-Central Tax, dated the 3rd April, 2020 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 235(E), dated the 3rd April, 2020 and No. 14/2021-Central Tax, dated the 1st May, 2021 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 310(E), dated the 1st May, 2021 and No. 13/2022-Central Tax, dated the 5th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 516(E), dated the 5th July, 2022, the Government, on the recommendations of the Council, hereby, extends the time limit specified under sub-section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the said Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilised, relating to the period as specified below, namely:-
ALOK KUMAR, Director
Several thousand of GST Notices sent for FY 2017-18
tices claiming shortfalls in payment of tax for FY18. The deadline to issue notices is September 30 and the taxpayers have been given 30 days to respond to these automated notices.
These notices largely pertain to mismatches in GST output and liability, input tax credit, ineligible tax credit claims, and reversal of credit in case of exempt supplies, said a person privy to the development.
Both central and state GST authorities have sent these notices over the last fortnight, a government official said.
Tax experts said this would lead to an increase in litigation over the next three months while hitting cash flows of companies as they would be required to furnish 10% of the total liability as a deposit for filing an appeal. “Given that the adjudication deadline for these show cause notices is December 31, we are going to see a huge litigation glut in the next three months,” tax expert. “Also, given that a deposit of 10% is necessary for appeal, a lot of money is going to be taken out of the cash flows of these industries.”
Tax authorities can send notices even after September 30, but they would need to prove a case of ‘tax evasion’ or ‘fraud’ on the part of the taxpayer.
Another expert observed that several notices appear to have been issued without proper analysis of facts and figures.
“Many of them should be dropped later, though it will lead to avoidable disputes and paperwork for the industry. Going forward, the authorities may want to plan ahead so that these instances can be minimised,” he added.
“Short payment of tax on related party transactions, incorrect claims of input tax credit, export positions (including refunds granted), and state-wise credit availment and distribution are some of the common areas of disputes,” said the expert.