CBIC Chairman Advises that SCNs Should be Based on a Thorough Examination of Facts and Relevant Documents
The Central Board of Indirect Taxes & Customs (CBIC) is urging caution among its officers to avoid the reckless issuance of show cause notices (SCNs) under GST, as it may lead to unnecessary litigations. This guidance comes as the new deadline for issuing SCNs related to FY19 approaches its end on January 31, 2024.
CBIC Chairman’s Instruction
In a communication to tax officials, CBIC Chairman Sanjay Kumar Agrawal emphasized the importance of careful consideration before issuing SCNs. He highlighted that the issuance of show cause notices should be based on a thorough examination of facts and relevant documents submitted by taxpayers. Issuing SCNs recklessly may result in future litigations, according to Agrawal.
Extension of Timeline
Section 73 of the GST Act deals with the determination of tax-related issues, and the Finance Ministry recently extended the timeline for issuing orders related to the recovery of tax for FY19 to April 30, 2024. Consequently, the deadline for issuing SCNs has also been extended to January 31, 2024. Similar extensions apply for FY20, with the SCN due date now set for April 30.
CBIC’s Monitoring Instructions
CBIC has advised Chief Commissioners to closely monitor pending investigations and ensure that officers under their supervision work in a methodical manner. Agrawal urged quick adjudication of nearly 1 lakh legacy cases involving over ₹29,000 crore, pending for over 6 years since the rollout of GST.
Industry Insights
Industry sources have expressed concerns over the potential for errors and disputes when tax officers hastily issue notices to meet deadlines. It is advised that taxpayers carefully review such notices and consult professionals if needed.
Expert Opinion
Rajat Mohan, Executive Director of Moore Singhi, stressed the need for more efficient processes, better tax administration, and policy changes to ensure accurate and fair tax collection. He cautioned against compromising the quality and fairness of tax assessments due to hasty issuance of notices.
Conclusion
As the GST deadline for FY19 approaches, CBIC’s cautionary instructions aim to strike a balance between procedural efficiency and fairness in tax assessments. Taxpayers are advised to review notices carefully, and authorities are encouraged to adopt a prudent approach to avoid unnecessary disputes and ensure a fair tax collection process.
To Access the GSTN Advisory 623 CLICK HERE
Also Read
Madras High Court Clarifies GST on Gift Voucher: Stance of AAAR Rejected by Court
I loved even more than you will get done right here. The overall look is nice, and the writing is stylish, but there’s something off about the way you write that makes me think that you should be careful what you say next. I will definitely be back again and again if you protect this hike.
I have been browsing online more than three hours today yet I never found any interesting article like yours It is pretty worth enough for me In my view if all website owners and bloggers made good content as you did the internet will be a lot more useful than ever before
Somebody essentially lend a hand to make significantly articles Id state That is the very first time I frequented your website page and up to now I surprised with the research you made to make this actual submit amazing Wonderful task
Thanks I have recently been looking for info about this subject for a while and yours is the greatest I have discovered so far However what in regards to the bottom line Are you certain in regards to the supply