How to adjust additional tax paid u/s 60 of CGST Act : ICAI suggestion

Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India

40. Adjustment of additional tax paid – Section 60(3)

It is not clearly stated in the act is as to when additional tax is paid then how will the registered person(s) adjust it against input/output liability as the case may be. Even if we assume that the decision shall be delivered by proper officer within a period of one year then the period of September of the following year would have lapsed if the application is filed in say July/August for which the final return is required to be filed under section 39 (9) by the month of September of next year

Suggestions:

It needs to be stated that proviso of sec. 39 (9) says “Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier”

Alternatively, if the law is to stand as it is then it should be provided that notwithstanding the provisions of section 16 (4) and Section 39 (9) of the CGST Act the registered person(s) shall be allowed to adjust the amount paid in terms of order passed under Section 60 (3) of CGST Act in the month following the month in which final payment is made by the registered person or refund is received by the registered person.

Read ICAI Suggestions on GST Act to Govt : July 2017

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