Meaning of demand and recovery under GST

What is demand and recovery under GST

 

Demand and Recovery

This post explains about demand and recovery under GST.

Demand and Recovery provisions are stated in section 142 of the CGST Act, 2017.

  1. Notice and order for demand of amounts payable under the Act.- (1) The proper officer  shall  serve, along with the

(a)               notice under sub-section (1) of section 73 or sub-section (1) of section 74 or sub-section (2) of section 76, a summary thereof electronically in FORM GST   DRC-01,

(b)               statement under sub-section (3) of section 73 or sub-section  (3)  of  section  74,  a  summary thereof electronically in  FORM GST  DRC-02, specifying therein the  details of the amount payable.

  1. Where, before the service of notice or statement, the person  chargeable  with  tax  makes payment of the tax and interest in accordance with the  provisions of  sub-section (5) of section     73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub- section (5) of section 74, he shall inform the proper officer of such payment in FORM GST DRC-   03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST  DRC–04.
  2. Where the person chargeable with tax makes payment of tax and interest under sub-section (8)    of  section 73 or, as the case may be,  tax, interest and penalty under sub-section (8) of  section   74 within thirty days of the service of a notice under sub-rule (1), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an  order in FORM GST DRC-05 concluding the proceedings in respect of the said   notice.
  3. The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 shall be in FORM GST   DRC-06.
  4. A summary of the order issued under sub-section (9) of section 73 or sub-section (9) of section   74 or sub-section (3) of section 76 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax.
  5. The order referred to in sub-rule (5) shall be treated as the notice for recovery.
  6. Any rectification of the order, in accordance with the provisions of section 161, shall be made by the proper officer in FORM GST  DRC-08.

The information on demand and recovery under GST is detailed above.   Comment below your thoughts on demand and recovery under GST.


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