What happens if a person collects tax from another person but does not deposit the same with Government?

Ans. It is mandatory to pay amount, collected from other person representing tax under this act, to the government.

For any such amount not so paid, proper officer may issue SCN (show Cause Notice)  for recovery of such amount and penalty equivalent to such amount.

{Sec.76 (1&2) of CGST Act 2017}

What happens if a person collects tax from another person but does not deposit the same with Government?

Ans. It is mandatory to pay amount, collected from other person representing tax under this act, to the government.

For any such amount not so paid, proper officer may issue SCN (show Cause Notice)  for recovery of such amount and penalty equivalent to such amount.

{Sec.76 (1&2) of CGST Act 2017}

In case the person does not deposit tax collected in contravention of Section 76(1) of GST Act, what is the proper course of action to be taken by GST officer?

Ans. SCN (Show Cause Notice) may be issued and if so, an order shall be passed following Principles of natural justice within one year of date of issue of such notice. 

{Sec.76 (1&2) of CGST Act 2017}

What is the time limit to issue notice in cases under Section 76 i.e. taxes collected but not paid to Government?

Ans. There is no time limit. Notice can be issued on detection of such cases without any time limit.

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