Tax Collection at Source by E-Commerce Operators under Section 52(1) of the GST Act [GSTR-8]

Compliances under Section 73 & 74 of the GST Act, 2017 [Form GST DRC-01A, Form GST DRC – 03, Form GST DRC – 06]

Background

Under the Indian Goods and Services Tax (GST) regime, Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 provide the statutory framework for determining and demanding tax that has not been paid, has been short-paid, has been erroneously refunded, or where input tax credit (ITC) has been wrongly availed or utilised. These sections were introduced to give tax authorities clear procedural powers for recovery while distinguishing between honest errors and deliberate tax evasion.

Applicability

Section 73 and 74 of the Act are applicable on:

  • Partial payment of amount/submissions against proposed liability
  • Voluntary Payment of tax, interest, penalty as per Section 73(5),74(5)
  • Notice issued under any section of GST

Key Compliances under the Act

  1. Form GST DRC – 01A (Section 73, 74, Rule 142 (2A))

Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A

  1. Form GST DRC – 03 (Section 73, 74, Rule 142(2))

Where before the service of demand / recovery /notice / statement, a person makes payment of tax, interest, penalty as per Section 73(5), 74(5), he shall inform the proper officer of such payment in FORM GST DRC-03

  1. Form GST DRC – 06 (Section 73, 74, Rule 142(4))

The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 or the reply to any Notice issued under any section whose summary has been uploaded electronically in FORM GST DRC-01 under sub-rule (1) shall be furnished in FORM GST DRC-06 .

Penalty & Punishment

  • Failure to furnish information in Part B of Form DRC-01A shall lead to non-submission of details of partial payment of tax amount communicated to the assessee by GST department
  • Failure to furnish information in Form DRC-03 shall lead to non-submission of details payment of tax amount by the assessee to GST department
  • Failure to furnish reply to notice from GST department shall lead to prosecution or tax levy as decided by GST department

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