No recovery can be made without following the procedure specified in Section 78 & 79 of the GST Act
Any short-payment of tax or wrong availment of input tax credit detected during the course of Audit (u/s 65), Special Audit (u/s 66) or during the course of search and inspection, is required to be “determined/confirmed” under the provisions of section 73 or section 74 or section 76 as the case may be and recovery of amount can be recovered by following the procedure provided under section 78 (option to pay determined amount along with interest and penalty within 3 months from date of order received) or file an appeal against the order under section 107;
After expiry of 3 month’s time period provided u/s 78, if no appeal has been filed against the order, action for recovery can be initiated under section 79 of the Act,
However, if taxpayer agreed with the detection of tax /wrong ITC has option to pay it along with applicable interest and penalty as per section 73 (5) and section 74 (5) through DRC – 03, voluntarily. No “UNDER PROTEST” method is prescribed under the GST Law.
NO RECOVERY CAN BE MADE WITHOUT FOLLOWING THE PROCEDURE SPECIFIED IN THE ACT.
THE CBIC vide Instruction No. 01/2022-23 [GST – Investigation] dated 25.05.2022 has clarified the issue of recovery of tax.
The Copy Of the instructions is as under:
