Vithal is a trader, registered in Nashik (Maharashtra), under the regular scheme under GST Law. On the GST portal, his electronic liability register, show the following tax and other liabilities due as on 1st June, 2024
CS Professional · Advanced Tax Laws · PYQS · June 2024
Vithal is a trader, registered in Nashik (Maharashtra), under the regular scheme under GST Law. On the GST portal, his electronic liability register, show the following tax and other liabilities due as on 1st June, 2024 : Particulars Amount (₹) Self-assessed output tax due for April, 2024 3,00,000 Self-assessed output tax due for May, 2024 3,50,000 Interest due for April, 2024 25,000 Penalty due for April, 2024 28,000 Liability due towards demand notice issued by proper officer u/s 74 for suppression of facts 1,25,000 Being afraid of liability arising out of demand notice u/s 74, he is of the opinion to pay this liability first over other tax and liability due. Assuming that there is sufficient balance in his electronic credit and cash ledgers, you are required to examine the provision of order of discharge of GST liabilities u/s 49(8) of the CGST Act, 2017 with reference to above particulars and advice to Vithal accordingly.
Answer & Explanation:
The order of discharge of GST liabilities under section 49(8) of the CGST Act, 2017 is as under: i. Self-assessed tax, interest, penalty, fee or any other amount related to returns of the previous tax periods ii. Self-assessed tax, interest, penalty, fee or any other amount related to returns of the current tax periods iii. Any other amount payable including demand determined under section 73 or section 74 In view of the aforesaid provision, Vithal cannot clear his liability of demand notice u/s 74 first over other tax and liabilities due. The order of discharge of liabilities of Vithal will be as under: S No. Particulars Amount (₹) (i) Self-assessed output tax, interest and penalty due for April, 2024 (3,00,000 + 25,000 + 28,000) 353,000 (ii) Self-assessed output tax due for May, 2024 350,000 (iii) Liability arising out of demand notice u/s 74 1,25,000
Topics: GST
Related Questions in this Topic
- Mr. Sunil has obtained a voluntary registration under the GST law in the State of Karnataka in January, 2024 but has not...
- With reference to the provision of section 83 of the CGST Act, 2017 regarding the provisional attachment of property, An...
- With reference to the provision of section 83 of the CGST Act, 2017 regarding the provisional attachment of property, An...
- With reference to the provision of section 83 of the CGST Act, 2017 regarding the provisional attachment of property, An...
- With reference to the provision of section 83 of the CGST Act, 2017 regarding the provisional attachment of property, An...