CBIC Notification No. 56/2023 Dated. 28 December 2023: Extension of Time Limit of Order Issuance Under Section-73(9) of CGST Act for Recovery of Tax Relating to FY 2018-19 & FY 2019-20
In line with the dynamic tax landscape, CBIC Notification 56/2023 – CT has been issued to extend the time limits for the issuance of orders under section 73(9) of the Central Goods and Services Tax Act, 2017. This pertains specifically to the recovery of tax or excess Input Tax Credit (ITC) utilized in the financial years 2018-19 and 2019-20.
Extended Time Limit:
The Government, in the exercise of its powers under section 168A of the CGST Act, 2017, along with section 20 of the IGST Act, 2017, and section 21 of the UTGST Act, 2017, has decided to modify the existing notifications. This amendment, specified in Notification 56/2023 – CT, extends the time limits as follows:
1. Financial Year 2018-19: The deadline for issuing orders related to tax recovery for this fiscal year is extended until the 30th day of April, 2024.
2. Financial Year 2019-20: The deadline for orders concerning tax recovery in this fiscal year is extended until the 31st day of August, 2024.
Legal Authority:
The extension is authorized under section 168A of the CGST Act, 2017, and in alignment with section 20 of the IGST Act, 2017, and section 21 of the UTGST Act, 2017. This modification partially amends previous notifications, specifically No. 35/2020-Central Tax, dated the 3rd April, 2020; No. 14/2021-Central Tax, dated the 1st May, 2021; No. 13/2022-Central Tax, dated the 5th July, 2022; and No. 09/2023-Central Tax, dated the 31st March, 2023.
Implications for Taxpayers:
This extension provides taxpayers with additional time to address issues related to tax non-payment, underpayment, or incorrect utilization of input tax credit for the specified fiscal years. It is crucial for affected entities to utilize this grace period effectively in ensuring compliance with the revised deadlines.
Conclusion:
In conclusion, CBIC Notification 56/2023 – CT signifies a responsive approach by the Government to accommodate the evolving needs of taxpayers. This extension reflects a commitment to facilitating smoother tax processes while offering businesses the necessary time to rectify any discrepancies in their tax records. Stay informed and make the most of this extended timeline for a seamless tax compliance experience.
To Access the CBIC Notification 56/2023-Central Tax CLICK HERE
To Read about the Recent Order of Supreme Court Quashing ITC Denial CLICK HERE
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