CBIC empowers senior tax officers for early GST recovery
The Central Board of Indirect Taxes and Customs (CBIC) has authorized Principal Commissioners or Commissioner level officers, to issue directives for early recovery of goods and services tax (GST) dues. This move allows recovery before the standard three-month period post serving a demand order. The decision is applicable in exceptional cases where it is deemed necessary for revenue interests, with reasons recorded in writing.
Uniform implementation of early GST recovery guidelines
CBIC has issued instructions to ensure uniformity in implementing early GST recovery provisions across field formations. Typically, recovery proceedings are performed by the jurisdictional Deputy or Assistant Commissioner of Central Tax. In cases where early recovery is deemed necessary, these officers must present their case for early recovery, to their respective Principal Commissioner or Commissioner of Central Tax. If satisfied, the Principal Commissioner or Commissioner must document the reasons in writing.
Expert comments on new changes
Rajat Mohan, executive director at Moore Singhi, commented on the new guidelines. He stated that the instructions strike a balance between safeguarding revenue and maintaining ease of doing business. Mohan added that these guidelines improve transparency and predictability in tax administration, by mandating proper documentation for early recovery actions. He expressed hope for similar instructions to be issued by state tax administrations to foster a fairer tax environment across India.
