Circular, 2024

Text

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Circular No- 24250367 Osffice u! the Commissioner, tate Tax, Uggay pradesh (GST Scetion) Letter No. GST/202435/ | 0Y /State Tax ucknow: Dated: 0% November, 2024 To, All Zonal Additional Commissioner, Additional Commissioner Grade -2 (S.1.B.) rele/ S.1B) State Tax, Uttar Pradesh.

Subject: Guidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into opera tion.

Doubts have been raised by the trade and the field formations in respect of recovery of outstanding dues, in cases where the first appellate authority has con firmed the demand created by the adjudicating authority, fully or partially, and whe re appeal against such order of appellate authority could not be filed under section 112 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafier referred to as ‘the UPGST Act’) due to non- constitution of Appellate Tribunal (hereinafter referred to as ‘Tribunal’), as yet. Doubts have also been raised as to whether the amount that w as originally intended to be paid towards the demand created but has inadvertently been paid and intimated by the taxpayer through FORM GST DRC-03 either under the ‘voluntary’ c ategory or under the “others’ category, can be adjusted against the pre-deposit that is require d to be paid by the taxpayer for filing appeal before the appellate authority under sec tion 107, and before the appellate tribunal under section 112 of the UPGST Act.

r to clarify the issue and to ensure unitormity 2. The matter has been examined. In orde formations, the in the implementation of the provisions of the law across field Commissioner, in exercise of its powers conferred by section 168 of the UPGST Act, hereby issues the following clarifications and guidelincs,

3. In cases, where the first appellate authority has confirmed the demand issucd by the adjudicating authority, partially or fully, the taxpayers cannot file appeal against the said appellate order at present due to non-operation of GST Appellate Tribunal as yet. As per

Section 112 of the UPGST Act, every person has statutory remedy of appeal against the order passed by the first appellate authority or by @ revisional authority, before the Tribunal. As per section 78 of UPGST Act, the recovery proceedings are to be initiated, if the amount Page 10f4 payable as per the order issued under the said act s not paid by the concerned person within the said period of three months from the date of service of the said order. It may further be noted that if any person files an appeal in accordance with the requirement of sub-section (8) of section 112 of the UPGST Act (i.e., 01 Payment of prescribed pre-deposit), the recovery proceedings for the balance amount is deemed to be stayed il disposal of the appeal as per sub-section (9) of section 112 of the UPGST Act, However, as the taxpayers are not able to file appcal under section 112 in Appellate Tribunal against the orders of appellate authority and therefore, are not able to make the pre-deposit under sub-section (8) of section 112 of UPGST Act, in some cases, the tax officers are taking a view that there is no stay against recovery as per sub-section (9) ofscctiot? ?12 of UPGST Act. In some cases, taxpayers have either paid or are willing to pay the requisite amount of pre-deposit as per sub-section (8) of section 112 of UPGST Act either by crediting in their electronic liability register against the demand so created, or by depositing the said amount through FORM DRC-03. However, tax officers are still resorting to recovery proceedings after completion of period stipulited under scction 78 of UPGST Act.

4. In order to facilitate the taxpayers to make the payment of the amount of pre-deposit as per sub-section (8) of section 112 of UPGST Act, and to avail the benefit of stay from recovery of the remaining amount of confirmed demand as per sub-section (9) of section 112 of UPGST Act, it is hereby clarified that in cases where the taxpayer decides to file an appeal against the order of the appellate authority and wants to make the payment of the amount of pre-deposit as per sub-section (8) of section 112 of UPGST Act, he can make the payment of an amount equal to the amount of pre-deposit by navigating to Services >> Ledgers>> Payment towards demand, from his dashboard. The taxpayer would be navigated to Electronic Liability Register (ELL) Part-II in which he can select the order. out of the outstanding demand orders, against which payment is intended to be made. The amount so paid would be mapped against the sclected order and demand amount would be reduced in the balance liability in the aforesaid register. The said amount deposited by the taxpayer will be adjusted against the amount of pre-deposit required to be deposited at the time of filing appeal before the Appellate Tribunal.

king/ declaration with the jurisdictional of the appellate authority before within the timelines mentioned

5. The taxpayer also needs to file an underta proper officer that he will file appeal against the said orqer the Appellate Tribunal, as and when it comes into operation, thin s | in section 112 of the UPGST Act read with of Difficulties) Order, 2019 dated 03,12.2019. On pFOYldlflg the payment of an amount equal to the amount of pre-deposit as para 4 above, the recovery of the remaining amount 9f.confirmci Cmgzn ?9)"0{ section 112 the appellate authority will stand stayed as per provisions of sub-sec! of UPGST Act.

t equal to amoun t of mount ment of the a will

6. In case, the taxpayer does not make s rati on to the proper officer, then pre-deposit or does not provide the undertaking/ decl? be presumed thyg tax, authority and i, such law. Similarly, When {] Payer is pot Wwilli cases, recovye, he Tribunal ¢, g to fije appeal against the order of the appellate Ty ""OCCedings can be initiated as per the provisions of within the timelins specified { nfnes into operation, if the taxpayer does not file appeal ed in Section 112 of the UPGST Act read with Central Goods and Services Tax (Nintl > h R ! emoval of Difficulties) rder, 2019 dated 03.12.2019, the remaining amount of i the demand wil] pe recovered as per the provisions of law 71 It has also been noticed t hat some 1 i s § axpayers have already paid amounts that wer intended to have been paid tow; i i - o ¢ ” ards a demand, through FORM GST DRC-03. Attention is :15;:‘:/1[ th“T?‘IfiCH“OIl No. 721 da}cd 26.10.2024, vide which sub-rule (2B) of Rule 142 and \ DRC-03A has been inserted in Uttar Pradesh Goods and Services Rules, 2017 (heremaficr referred to as ‘UPGST Rules), providing for a mechanism for cases where the persPn liable to pay tax, interest and penalty under section 52 or section 73 or section 74 or sec(,on 76 or section 122 or scction 123 or section 124 or section 125 or section 127 or section 129 or section 130 of UPGST Act has, made payment of such tax, interest and penalty, inadvertently through FORM GST DRC-03 under sub-rule (2) of Rule 142. In such cases, the said person can file an application in FORM GST DRC-03A, electronically on the common portal, and the amount so paid and intimated through the FORM GST DRC-03 shall be adjusted as if the said payment was made towards the said demand on the date of such intimation through FORM GST DRC-03.

7.2 Accordingly, in cases where the concerned taxpayer has paid an amount that was intended to have been paid towards a particular demand through FORM GST DRC-03, has submitted an application in FORM GST DRC-03A on the common portal, the amount so paid and intimated through the FORM GST DRC-03 will be considered as if the payment was made towards the said demand on the date of such intimation through FORM GST DRC-03. The amount so paid shall also be liable to be adjusted towards the amount required to be paid as pre-deposit under Section 107 and Section 112 of the UPGST Act, if and when the taxpayer files an appeal against the said demand, before the appellate authority or the appellate tribunal, as mentioned in para 4 above, and the remaining amount of confirmed demand as per the order of the adjudicating authority or the appellate authority, as the case may be, will stand stay/ed as per provisions of sub-section (6) of section 107 and sub-section

(9) of section 112 of UPGST Act. However, if the taxpayer does not file appeal within the timelines prescribed in Section 107 and Section 112 of the UPGST Act, as the case may be, read with Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 dated 03.12.2019, the remaining amount of the demand will be recovered as per the provisions of law.

7.3 In this regard, it is to be mentioned that the application in FORM GST DRC-03A for adjustment of demand liability against the payment through FORM GST DRC-03 cannot be madé in cases where against the payment made through the said FORM GST DRC-03, proceedings have already been concluded by issuance of an order in FORM GST DRC-05 as per the Rule 142(3) of UPGST Rules, 2017.

Page 3 of 4 8.1 Currently, the above-mentioned functionality ,, filing of an application in FORM GST DRC-03A, is not available on the Common portal. Therefore, till the time. such functionality is made available on the common portal, in respect of cases where an amount of pre-deposit has been inadvertently paid through FORM GST DRC-03 instcad of making the said payment through Electronic Liability Ledger.qp against the demand created in the said ledger, the concerned taxpayer may intimate the Proper officer about the same, and on such intimation, the proper officer may not insist on recovery for the remaining amount payable by the concerned taxpayer, till the time the said func(ionalily of FORM GST DRC-03A is made availablc on the portal. made available on the portal, the ORM GST DRC-03A, on the common portal, 82 Once the functionality of FORM GST DRC-03A is concerned taxpayer may file an application in F at the carlicst, as mentioned in para 7.1 above and on doing so, the amount paid vide FORM GST DRC-03 may be adjusted against the pre-deposit under section 107 or section 112 of the UPGST Act, as the case may be, as detailed in para 7.2 above, However, in case the taxpayer fails to filc an application in FORM GST DRC-03A on the common portal, the proper officer may proceed to recover the amount payable as Per provisions of section 78 and section 79 of CGST Act.

9. This circular is being issued in pursuance of CBIC's Circular No. 224/18/2024 dt

10. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

11. Difficulty if any, in the implementation of this circular, may be brought to the notice of the Undersigned.

By Ordey, o\ Commissioner, State Tax, U.P.

Copy To:

1. Joint Commissioner (I.T.), State Tax HQ, Lucknow for uploading the Circular on the Departmental Website.

Joint Commissioner(GST) State Tax HQ, Lucknow.

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Provisions this circular answers to

Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.

Other instruments under the same Act

All of the The Uttar Pradesh Goods and Services Tax Act, 2017