Why not to deal with GST defaulters ?

By | September 29, 2018
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(Last Updated On: September 29, 2018)

Why not to deal with GST defaulters ?

Video Lecture Explaining why not to deal with GST Defaulters

Relevant Section 64(1) of CGST Act 2017  Summary assessment in certain special cases.

The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:

Provided that where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section.

If Deafult is made by Seller in Payment of Tax

As per 27th GST Council Meeting Decisions on 04.05.2018 :- 

In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like

  • missing dealer,
  • closure of business by supplier or
  • supplier not having adequate assets etc.


  • Try to find out from how many years supplier is dealing in business and what is the Tax compliance status of the supplier.
  • Be careful while dealing with the suppliers who has newly set up his business and taken GST registration
  • Be careful if you are businessmen and buying goods online .
  • If you are a seller ,become GST and Tax Compliant so that buyers can deal with you.

Topic wise Commentary on GST Act of India

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