1 / 6

Clarification Regarding Extension of Limitation Under CGST Act

We are full service firm focuses in domain of Business Setup in India, FEMA, Expatriates Taxation, Accounting Outsource, International Taxation, Auditing, Transaction advisory and so on.<br><br>Underpinned by our values and with our global presence, we serve on FDI advisory, cross-border accounting, International tax planning and Management consulting needs of our overseas clients all over the world.<br>

vjmglobal
Download Presentation

Clarification Regarding Extension of Limitation Under CGST Act

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Clarification Regarding Extension of Limitation Under CGST Act

  2. Background • The GST Policy Wing of the Government of India passed a set of notifications under S.168A of the CGST Act, 2017 whereby the time limits and limitation period of various activities and actions of different authorities on multiple issues were specified and extended to certain dates based on the nature of the activity. • However, multiple requests for clarifications were received by the Ministry of Finance, Govt. of India as to how and in what manner the time limitations would operate. The same was directed by the Supreme Court of India in Miscellaneous Application No. 665/2021 in SMW(C) No. 3/2020 to resolve the grievances of the people

  3. Order of the Hon’ble Supreme court dated 27th April 2021 • “We, therefore, restore the order dated 23rd March, 2020 and in continuation of the order dated 8th March, 2021 direct that the period(s) of limitation, as prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, shall stand extended till further orders. It is further clarified that the period from 14th March, 2021 till further orders shall also stand excluded in computing the periods prescribed under Sections 23 (4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings. We have passed this order in exercise of our powers under Article 142 read with Article 141 of the Constitution of India. Hence it shall be a binding order within the meaning of Article 141 on all Courts/Tribunals and Authorities.”

  4. Deliberation Of The 43rdMeeting Of The GST Council: • The aforementioned order of the Supreme Court was deliberated in the 43rdmeeting of the GST Council. The Council in their deliberation provided various relaxations to the taxpayers and further decided that whenever the Supreme Court extends such limitations, they would apply equally in matters of the GST. Thereafter, a legal opinion was also sought on the extent of application of the order of the Hon’ble Supreme Court of India in this matter and a set of decisions were rendered by the GST Council.

  5. Final Decision Of The GST Council Post-legal Consultation • A. Proceedings/Compliances Needed To Be Done By Taxpayers- • These actions would continue to be governed as per the CGST Act, 2017 and time limit provided/ extensions granted under the statute itself. Various Orders of the Hon’ble Supreme Court would not apply to the said proceedings/ compliances on part of the taxpayers. Moreover, the appeals that are pending will be heard as per the CGST Act only

  6. B. Quasi Judicial Proceedings By Taxation Authorities- • The taxation authorities can continue to hear and dispose-off the proceedings which are already pending. The disposal may include disposal of application for refund, application for revocation of cancellation of registration, adjudication proceedings of demand notices, etc. Similarly, the appeals which are pending can be heard and dispose-off as per the CGST Act or any other notification issued.

More Related