Time Limit for issue of demand order under Section 73(10) of CGST Act, 2017 for Financial Year 2017-18

Section 73 of the Central Goods and Services Tax (CGST) Act, 2017 provides for the issuance of a demand order for the recovery of any tax, interest, or penalty due to non-compliance with the provisions of the Act. Sub-section (10) of section 73 prescribes the time limit for the issuance of a demand order for the financial year 2017-18.

As per sub-section (10) of section 73, the demand order for any amount due for the financial year 2017-18 must be issued on or before the 30th of September, 2021. This means that the tax authorities are required to issue the demand order for any tax, interest or penalty due for the financial year 2017-18 on or before the 30th of September, 2021.

It is important to note that this time limit is applicable only for the financial year 2017-18, and the time limit for the issuance of a demand order for subsequent financial years may be different.

If the demand order for the financial year 2017-18 is not issued by the tax authorities within the prescribed time limit, the taxpayer may be entitled to certain benefits, such as waiver of interest and penalty. However, it is advisable for taxpayers to comply with the GST provisions and pay any tax, interest or penalty due in a timely manner to avoid any adverse consequences.

In case a taxpayer receives a demand order for the financial year 2017-18 after the prescribed time limit, they should seek the advice of a qualified tax professional and take appropriate legal action, if necessary.

Benefits available to taxpayers if the demand order is not issued within the prescribed time limit

If the demand order for the financial year 2017-18 is not issued by the tax authorities within the prescribed time limit of 30th September 2021, the taxpayer may be entitled to certain benefits, such as waiver of interest and penalty.

According to Section 73(10) of the CGST Act, 2017, if a demand order is not issued within three years from the due date of filing of the annual return for a financial year, the amount of tax, interest, or penalty payable by the taxpayer shall be deemed to have been waived. However, this waiver applies only to the demand order for the financial year 2017-18 and not for any other financial year.

Therefore, if a taxpayer has any outstanding tax, interest or penalty liability for the financial year 2017-18 and the demand order is not issued within the prescribed time limit, they may be entitled to a waiver of the amount due. This can be a significant relief for taxpayers who may have been facing financial difficulties or may have been unable to pay their dues due to other reasons.

It is important to note that the waiver of interest and penalty is available only if the demand order is not issued within the prescribed time limit. If the demand order is issued after the prescribed time limit, the taxpayer may be liable to pay the interest and penalty, as applicable. Therefore, it is advisable for taxpayers to comply with the GST provisions and pay any tax, interest, or penalty due in a timely manner to avoid any adverse consequences.

Significance of the time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for the financial year 2017-18

The time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for the financial year 2017-18 is significant because it provides a deadline for the tax authorities to issue a demand order for any tax, interest, or penalty due for that financial year.

The time limit of 30th September 2021 ensures that the taxpayers are not kept in uncertainty about their liabilities under the GST regime for the financial year 2017-18. The issuance of a demand order after the prescribed time limit may be considered as a delay on the part of the tax authorities in taking action against non-compliant taxpayers, and may also result in the loss of certain benefits for taxpayers.

If the demand order for the financial year 2017-18 is not issued by the tax authorities within the prescribed time limit, the taxpayer may be entitled to certain benefits, such as waiver of interest and penalty. However, it is advisable for taxpayers to comply with the GST provisions and pay any tax, interest, or penalty due in a timely manner to avoid any adverse consequences.

Overall, the significance of the time limit for issuance of demand order under Section 73(10) is to ensure timely action by the tax authorities, and to provide certainty to taxpayers regarding their liabilities under the GST regime.

FAQs

Here are some frequently asked questions (FAQs) related to the time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for financial year 2017-18:

Q: What is the significance of the time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for financial year 2017-18?

A: The time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for financial year 2017-18 is significant because it provides a deadline for the tax authorities to issue a demand order for any tax, interest, or penalty due for that financial year. If the demand order is not issued within the prescribed time limit, the taxpayer may be entitled to certain benefits, such as waiver of interest and penalty.

Q: What is the time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for financial year 2017-18?

A: The time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 for financial year 2017-18 is on or before 30th September 2021.

Q: Is the time limit for issuance of demand order under Section 73(10) applicable for all financial years?

A: No, the time limit for issuance of demand order under Section 73(10) of the CGST Act, 2017 is specific to financial year 2017-18. The time limit for the issuance of a demand order for subsequent financial years may be different.

Q: What are the benefits available to taxpayers if the demand order is not issued within the prescribed time limit?

A: If the demand order for the financial year 2017-18 is not issued by the tax authorities within the prescribed time limit, the taxpayer may be entitled to certain benefits, such as waiver of interest and penalty. However, it is advisable for taxpayers to comply with the GST provisions and pay any tax, interest or penalty due in a timely manner to avoid any adverse consequences.

Q: What should taxpayers do if they receive a demand order after the prescribed time limit?

A: If a taxpayer receives a demand order for the financial year 2017-18 after the prescribed time limit, they should seek the advice of a qualified tax professional and take appropriate legal action, if necessary.