Government Extends Time Limit for Tax Recovery Orders: A Quick Guide
Legal Authority:
The extension is made under section 168A of the CGST Act, 2017, in conjunction with the IGST Act, 2017, and the Union Territory Goods and Services Tax Act, 2017.
Modification Details:
Partial modification of previous notifications: No. 35/2020-Central Tax, No. 14/2021-Central Tax, No. 13/2022-Central Tax, and No. 09/2023-Central Tax.
Time Limit Extension:
The time limit specified under sub-section (9) of section 73 for issuing recovery orders under the CGST Act, 2017, is extended.
Applicable Periods:
For the financial year 2018-19, the deadline is extended up to April 30, 2024.
For the financial year 2019-20, the deadline is extended up to August 31, 2024.
Background:
The extension aims to provide additional time for the issuance of recovery orders related to tax not paid or short-paid, or input tax credit wrongly availed or utilized.
Council Recommendations:
The extension is based on recommendations from the GST Council, emphasizing the need for a flexible approach to tax recovery.
Impact on Taxpayers:
The move offers relief to businesses by extending the timeframe for tax recovery orders, aligning with ongoing efforts to streamline GST procedures.