Curb on unfair GST demand recovery proceedings
If you receive a GST demand order, you have the option to either file an appeal against it or pay the demand amount. However, if GST officials believe that it is necessary to ask for payment before the stipulated time (three months) for the 'interest of revenue', they can do so. Unfortunately, this provision has been misused by some GST field officers. In order to prevent this misuse, Central Board of Indirect Taxes & Customs (CBIC) has issued new clarification guidelines stating that GST field officers need to obtain prior approval from a higher authority before initiating demand recovery.
How the guideline on demand recovery proceedings will work?
As per a circular by CBIC issued on May 30, 2024, some GST field officers-initiated GST demand recovery proceedings in the 'interest of revenue' before the stipulated time period even in cases where it was specifically not required to do so.
To prevent unnecessary harassment of taxpayers, the CBIC has issued new instruction guidelines. These guidelines must be followed for initiating the GST demand recovery process before three months have passed from the date of service of the GST demand notice.
