Detailed information on reverse charges on freight and other amounts

- Sales Tax : Soham Mashruwala

The GST Act is now five years old. It comes as no surprise that the entrenched provision under the law and its loose interpretation. At present, in the name of sheet verification, the totting details are being sought by giving a short period. On the Dachkakhata GST portal, the figures are written as they appear, making false assumptions and asking for details. It is obvious that the import purchase information does not come in GSTR 2A and there is a big fuss over the difference in the amount. On the other hand GSTAudit assessment is going on. Under the GST Act, there is a provision to pay the amount under reverse charge. Today's article discusses what to do if a dispute arises and a demand arises while the GSOT audit assessment is underway.

Demand for audit assessment

Sections 73 and 74 have been framed under the GST Act. A broad definition has been given under Article 74. All amounts due to concealment which arise during the audit assessment are deemed to be payable under section 74. In this regard, it is imperative to give the officials an opportunity to pay the amount under Section 73 instead of taking the amount achieved under Section 74. As soon as the audit assessment has started, the amount directly imposed under Section 74 should be paid under Section 74.

Reverse charge and revenue neutrality

In cases where section 17 does not apply, tax credit is recoverable on the amount paid under reverse charge. One thing is certain that when the amount paid under reverse charge is taxable. One thing is certain that section 74 does not apply when the amount due at the time of audit assessment is to be paid if the amount paid under reverse charge is eligible for tax credit. In this regard the judgment of Hon'ble Supreme Court in Nirlon Ltd. v. C.E. (320 ELT 22 (SC)) is very important and accurate. In this case there is no room to believe that there is malice or concealment. Audit assessment under GST ignores such noble judgment by the authorities and shows unbridled demand to the supplier. Once the account has accepted revenue neutrality. That supplier should not dispute this. Every supplier Accountability arises in respect of floor traffic. When an amount is paid at the time of audit assessment no one gets tax credit. Reverse charge in case of revenue neutral should not be demanded at the time. So that no dispute arises without cause. This matter has been held under the earlier law in Hon'ble Sistat (Ahmedabad Tribunal) Reliance Ind. Ltd. v. C. CE.2009 (244) ELT 254. in which case any amount is payable which is ultimately recoverable by the payer as CENVAT. In case of such amount m Should not count. Thus, imposition of false demand on suppliers by the account should be stopped.