The Goods and Services Tax (GST) is a comprehensive indirect tax that has replaced various indirect taxes in India. The GST law provides for a tax determination process, which is a mechanism for determining the amount of tax payable by a taxpayer. Here's an overview of the anatomy of tax determination proceedings under GST:
1. Registration: The first step in the GST tax determination process is to register for GST. This is mandatory for businesses with an annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for businesses in North-Eastern and hill states).
2. Payment of tax: After registration, the taxpayer is required to pay the appropriate amount of tax on the goods and/or services supplied by them. GST has three components: CGST (Central GST), SGST (State GST), and IGST (Integrated GST). The payment of tax is made through electronic payment modes such as NEFT, RTGS, or by using the GST payment portal.
3. Filing of returns: The taxpayer must file GST returns on a monthly, quarterly, or annual basis, depending on their turnover. The GST returns are filed online, and the returns filed must be accurate and complete. A late fee is applicable for late filing of returns.
4. Assessment: After the filing of returns, the GST authorities may conduct an assessment to determine the correctness of the tax liability declared by the taxpayer. The assessment can be a desk assessment (done by the GST authorities without visiting the taxpayer's premises) or a physical assessment (done by visiting the taxpayer's premises). The assessment can also be a scrutiny assessment, where the GST authorities scrutinize the taxpayer's accounts, documents, and other relevant records.
5. Reassessment: If the GST authorities find any discrepancies in the assessment, they may initiate a reassessment to rectify the discrepancies. The taxpayer has the right to file an objection to the reassessment.
6. Appeals: If the taxpayer is not satisfied with the outcome of the assessment or reassessment, they can file an appeal before the appropriate appellate authority. The appellate authority may confirm, modify, or set aside the assessment or reassessment.
7. Adjudication: If there is a dispute between the taxpayer and the GST authorities, the matter may be referred to the adjudicating authority. The adjudicating authority may pass an order confirming, modifying, or setting aside the assessment or reassessment.
In summary, the anatomy of tax determination proceedings under GST includes registration, payment of tax, filing of returns, assessment, reassessment, appeals, and adjudication. The tax determination process is designed to ensure that the correct amount of tax is paid by the taxpayer and to provide a mechanism for dispute resolution in case of any discrepancies.
The adjudication process under GST refers to the process by which a dispute between a taxpayer and the GST authorities is resolved by an adjudicating authority. Here is an overview of the adjudication process under GST:
1. Show cause notice: If the GST authorities detect any discrepancies in the assessment or find that the taxpayer has contravened any provisions of the GST law, they may issue a show cause notice to the taxpayer. The show cause notice must specify the nature of the contravention and the proposed amount of tax and penalty.
2. Reply to show cause notice: The taxpayer must respond to the show cause notice within a specified time limit (usually 30 days) and provide their explanation for the alleged contravention. The taxpayer may also request a personal hearing before the adjudicating authority.
3. Adjudication order: After considering the taxpayer's response and conducting a hearing (if requested), the adjudicating authority will pass an order. The order may confirm, modify, or set aside the assessment or reassessment, and may also impose a penalty and interest.
4. Appeal: If the taxpayer is not satisfied with the adjudication order, they may file an appeal before the appropriate appellate authority within a specified time limit (usually 3 months from the date of the order).
5. Revision: The GST authorities may also initiate a revision of the adjudication order if they believe that there is an error in the order. The revision must be initiated within 3 months from the date of the order.
It's important to note that the adjudication process under GST provides an opportunity for the taxpayer to present their case and defend themselves against any alleged contraventions. The process is designed to ensure that the taxpayer's rights are protected and that disputes are resolved in a fair and transparent manner.
Sure, here are some frequently asked questions about the anatomy of tax determination proceedings under GST:
GST registration is a process by which a taxpayer is registered under the GST law and is issued a unique GST identification number. All businesses whose annual turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for businesses in North-Eastern and hill states) are required to register for GST.
There are different types of GST returns, such as GSTR-1, GSTR-2A, GSTR-3B, GSTR-4, GSTR-5, GSTR-6, GSTR-7, GSTR-8, and GSTR-9. The taxpayer must file the appropriate type of return based on their turnover and business activities.
Centre releases Rs. 17,000 crore of GST compensation to States/UTs
If a taxpayer fails to file their GST returns on time, they may be liable to pay a late fee and interest. The late fee is Rs. 50 per day (for CGST and SGST), and Rs. 100 per day (for IGST), subject to a maximum of 0.25% of the taxpayer's turnover.
Assessment is the process by which the GST authorities determine the correctness of the tax liability declared by the taxpayer. Reassessment is the process of conducting a fresh assessment after an earlier assessment has been completed. Reassessment is usually initiated when the GST authorities detect any discrepancies in the earlier assessment.
If a taxpayer is not satisfied with the outcome of the assessment or reassessment, they can file an appeal before the appropriate appellate authority within a specified time limit. The appellate authority may confirm, modify, or set aside the assessment or reassessment.
If there is a dispute between the taxpayer and the GST authorities, the matter may be referred to the adjudicating authority. The adjudicating authority may pass an order confirming, modifying, or setting aside the assessment or reassessment. The taxpayer has the right to appeal against the order of the adjudicating authority.