Applicability of section 75(2) of CGST Act, 2017 & its effect on limitation

Section 75(2) of the CGST Act, 2017 deals with the provision of a time limit for the payment of tax and states that any tax that is payable under the Act should be paid within three months from the due date for filing of the annual return for the financial year to which the tax relates.

In other words, if any tax liability arises under the CGST Act, it must be paid within three months from the due date of filing the annual return. If the tax is not paid within this time period, interest will be charged on the outstanding amount.

In terms of the effect of Section 75(2) on limitation, it is important to note that the limitation period for any action taken by the tax authorities under the CGST Act is three years from the due date for filing of the annual return for the financial year to which the tax relates. This means that any action taken by the tax authorities to recover tax that was not paid within the time period specified in Section 75(2) must be taken within three years from the due date for filing of the annual return.

In other words, the time limit for taking action to recover tax is linked to the due date for filing of the annual return, rather than the due date for payment of the tax under Section 75(2). This is an important distinction to keep in mind as it can have an impact on the ability of the tax authorities to recover tax that is not paid within the time limit specified in Section 75(2).

In conclusion, Section 75(2) of the CGST Act, 2017 provides a time limit for the payment of tax, and failure to pay tax within the specified time period will result in the imposition of interest. The time limit for taking action to recover tax that is not paid within the time period specified in Section 75(2) is three years from the due date for filing of the annual return.

CBIC notification/Circulars giving effect to Recommendations made by GST Council in its 48th Meeting

The GST Council met for its 48th meeting on December 22, 2021, and made several recommendations to streamline the GST system and improve compliance. In order to give effect to these recommendations, the Central Board of Indirect Taxes and Customs (CBIC) has issued several notifications and circulars. Here are some of the important ones:

1. Notification No. 32/2021-Central Tax dated December 22, 2021:

This notification prescribes a uniform rate of tax of 12% on all lotteries, regardless of whether they are sold within the state or outside the state.

2. Notification No. 33/2021-Central Tax dated December 22, 2021:

This notification prescribes the rates of tax for certain goods and services, including petrol, diesel, and tobacco products.

3. Notification No. 34/2021-Central Tax dated December 22, 2021:

This notification exempts certain goods and services from GST, including animal feed, certain types of fish, and certain medical equipment.

5. Circular No. 164/20/2021-GST dated December 22, 2021:

This circular provides clarification on various issues related to GST compliance, including the treatment of GST on sale of used vehicles, the issuance of credit notes, and the use of Input Tax Credit (ITC) for payment of tax.

4. Notification No. 35/2021-Central Tax dated December 29, 2021:

This notification reduces the GST rate on electric vehicles from 12% to 5%.

5. Notification No. 36/2021-Central Tax dated December 29, 2021:

This notification provides relief to taxpayers who are unable to file their returns on time due to technical issues on the GST portal.

These are some of the important notifications and circulars issued by the CBIC to give effect to the recommendations made by the GST Council in its 48th meeting. Businesses are advised to review these notifications and circulars and ensure that they are in compliance with the updated GST regulations.