Home Finance GST Council clarifies on issuance of recurring show-cause notices

GST Council clarifies on issuance of recurring show-cause notices

New Delhi: Tax authorities issuing show-cause notices must full all enforcement and consequential motion in opposition to the assessee in opposition to whom GST evasion was detected, the GST Council has mentioned.

Underneath the GST regime, states administer and management 90 per cent of the assessees with an annual turnover of as much as Rs 1.5 crore. Assessees with an annual turnover of over Rs 1.5 crore are administered by the Centre and state tax authorities in 50:50 ratio on computer-based random sampling. So as to resolve the jurisdictional points whereas coping with enforcement circumstances, the GST Council has clarified that the tax authorities, whether or not Centre or state, which initiates the enforcement motion might be accountable for finishing all consequential actions like enchantment, assessment, adjudication.

The GST Council Secretariat, in an workplace memorandum, mentioned that various practices are being adopted by the sphere formations relating to the issuance of recurring Present Trigger Notices (SCNs) in addition to different consequential actions in circumstances the place investigation has been initiated and finalized by central tax authorities in respect of the taxpayers beneath State tax Administration and vice versa.

“In some circumstances, the authority which initiates the investigation can be issuing recurring SCN whereas in another circumstances, it’s being left for the involved jurisdictional tax authority, who’s administrating the taxpayer, to situation recurring SCN,” it mentioned. The Council mentioned {that a} taxpayer positioned inside a state is open to enforcement motion by each authorities. “An enforcement motion in opposition to a taxpayer, assigned to state tax authorities, might be initiated by the central tax authorities (and vice versa). In such circumstances, all of the consequential motion regarding the case together with, however not restricted to, enchantment, assessment, adjudication, rectification, revision will lie with the authority which had initiated the enforcement motion,” the Council Secretariat mentioned. Refund in such circumstances could, nevertheless, be granted solely by jurisdictional tax authority, administering the taxpayer.

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