Subject: Guidelines for Recovery of Outstanding Dues
1. Background and Context
Issues have arisen regarding the recovery of outstanding dues where the first appellate authority has confirmed demands by the adjudicating authority.
Appeals against such orders cannot currently be filed with the GST Appellate Tribunal as it is not operational.
2. Clarifications and Guidelines:
Taxpayers are unable to file appeals due to the non-operation of the Appellate Tribunal. As per Section 112 of the CGST Act, an appeal should stay recovery proceedings once the prescribed pre-deposit is made.
Tax officers have initiated recovery proceedings due to the inability of taxpayers to file appeals.
3. Payment of Pre-Deposit
Taxpayers intending to file an appeal can pay the pre-deposit amount via their Electronic Liability Register (ELL) on the GST portal.
Upon payment and providing an undertaking to file the appeal when the Tribunal becomes operational, the recovery of the remaining demand will be stayed.
4. Undertaking Requirement:
Taxpayers must submit an undertaking to file the appeal within the stipulated timeline once the Tribunal is operational. Failure to do so may result in recovery proceedings.
5. Handling of Payments Made Through FORM GST DRC-03:
If payments intended for demands have been made through FORM GST DRC-03, they can be adjusted towards pre-deposit requirements by filing FORM GST DRC-03A.
Tax officers are advised not to insist on recovery until the functionality for FORM GST DRC-03A is available on the GST portal.
6. Instructions for Proper Officers:
Until the FORM GST DRC-03A functionality is available, taxpayers can inform proper officers about payments made through FORM GST DRC-03 to avoid immediate recovery proceedings.
Proper officers should adjust these payments towards the pre-deposit once the FORM GST DRC-03A is filed on the portal.