New GST process to Recover wrongly availed CENVAT credit

By | February 5, 2019
(Last Updated On: February 5, 2019)

New GST process to Recover wrongly availed CENVAT credit गलत सेनवैट क्रेडिट का लाभ उठाया ,तो वसूली

CBIC has issued circular on 01.02.2019 on how to

  • Recover  CENVAT credit wrongly carried forward as transitional credit in TRAN 1  or
  • Recover  arrears of wrongly availed CENVAT credit  under the existing law

Circular No. 88/07/2019-GST Dated 1 st February, 2019

6. Circular No. 58/32/2018 dated 04.09.2018

This circular is revised in order to streamline the modes of recovery. Accordingly, the original and the amended relevant para of the circular are detailed hereunder.

6.1 Original Para 3.
Currently, the functionality to record this liability in the electronic liability register is not available on the common portal. Therefore, it is clarified that as an alternative method, taxpayers may reverse the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B. The applicable interest and penalty shall apply on all such reversals which shall be paid through entry in
column 9 of Table 6.1 of FORM GST-3B.

6.2 Amended Para 3.
It may be noted that all such liabilities may be discharged by the taxpayers, either voluntarily in FORM GST DRC-03 or may be recovered vide order uploaded in FORM GST DRC-07, and payment against the said order shall be made in FORM GST DRC-03.

It is further clarified that the alternative method of reversing the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B would no longer be available to taxpayers.

 The applicable interest and penalty shall apply in respect of all such amounts, which shall also be paid in FORM GST DRC-03.

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