Guidelines for recovery proceedings under section 79 (Self Assessed Tax)
- Instruction No. 01/2022-GST dated 7th January 2021
- Guidelines for recovery proceedings under section 79 in cases covered under explanation to section 75(12) of the CGST Act, 2017
- Section 75(12)- Recovery of self-assessed tax in accordance with the return furnished under section 39, if remains unpaid
- Explanation to section 75(12) inserted w.e.f 01.01.2021
“self-assessed tax” shall include the tax payable in respect of outward supplies, the details of which have been furnished under section 37. but not included in the return furnished under section 39.
- The tax payable in respect of details of outward supplies furnished by the registered person in GSTR-I, has not been paid through GSTR-3B return, either wholly or partly, or any amount of interest payable on such tax remains unpaid, then in such cases, the tax short paid on such self-assessed and thus self-admitted liability. and the interest thereon, are liable to be recovered under the provisions of section 79.
- There may be a genuine reason for the difference between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B.
- Wherever any such amount of tax, self-assessed by the registered person in his GSTR-I is found to be short paid or not paid by the said person through his GSTR-3B return in terms of section 75(12), the proper officer may send a communication (with DIN) to the registered person to pay the amount short paid or not paid, or to explain the reasons for such short payment or non-payment of self-assessed tax, within a reasonable time, as prescribed in the communication.
- If the concerned person is able to justify the differences between GSTR-I and GSTR-3B, or explain the reasons for such short payment or non-payment of tax, to the satisfaction of the proper officer, or pays the amount such short paid or not paid, then there may not be any requirement to initiate proceedings for recovery under section 79.
- However, if the said registered person either fails to reply to the proper officer or fails to make the payment of such amount short paid or not paid, within the time prescribed in the communication or such further period as may be permitted by the proper officer, then the proceedings for recovery of the said amount as per section 79 may be initiated by the proper officer.
- Further, where the said registered person fails to explain the reasons for such difference/ short payment of tax to the satisfaction of the proper officer, then the proper officer may proceed for recovery of the said amount as per provisions of section 79.