Section 84 of The Central Goods and Services Tax Act, 2017
Where any notice of demand in respect of any tax, penalty, interest or any other amount payable under this Act, (hereafter in this section referred to as "Government dues"), is served upon any taxable person or any other person and any appeal or revision application is filed or any other proceedings is initiated in respect of such Government dues, then---
- (a)where such Government dues are enhanced in such appeal, revision or other proceedings, the Commissioner shall serve upon the taxable person or any other person another notice of demand in respect of the amount by which such Government dues are enhanced and any recovery proceedings in relation to such Government dues as are covered by the notice of demand served upon him before the disposal of such appeal, revision or other proceedings may, without the service of any fresh notice of demand, be continued from the stage at which such proceedings stood immediately before such disposal;
- (b)where such Government dues are reduced in such appeal, revision or in other proceedings--
- (i)it shall not be necessary for the Commissioner to serve upon the taxable person a fresh notice of demand;
- (ii)the Commissioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;
- (iii)any recovery proceedings initiated on the basis of the demand served upon him prior to the disposal of such appeal, revision or other proceedings may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.
Summary
- This provision ensures that efforts to collect unpaid taxes do not have to restart from the beginning if the owed amount changes after an appeal or review.
- If a legal process increases the amount a person owes, the tax officer will send a new notice only for the extra amount, while the collection process for the original amount continues from where it left off.
- If the legal process decreases the amount owed, the tax officer does not need to issue a brand new demand notice.
- Instead, the officer will simply inform the taxpayer and the collection authority about the reduction, and the collection process continues for the new lower amount.
Practical examples
FAQ
1. What happens under Section 84 of The Central Goods and Services Tax Act, 2017 if my tax demand is reduced after an appeal?
Under Section 84 of The Central Goods and Services Tax Act, 2017, the Commissioner simply informs you of the reduced amount and continues the recovery process for that lower amount without issuing a new notice.
2. Do I get a completely new notice under Section 84 of the CGST Act if my appeal results in higher tax dues?
According to Section 84 of the CGST Act, the Commissioner will serve you a new notice of demand only for the extra amount added to your dues, not the original amount.
3. Does an appeal pause the entire recovery process under Section 84 of the Central GST Act?
No, Section 84 of the Central GST Act ensures that recovery proceedings continue from the exact stage they were at before the appeal, adjusting only for the changed amount.
Test yourself
Q1.Under Section 84 of The Central Goods and Services Tax Act, 2017, what must the Commissioner do if government dues are enhanced after an appeal?
Q2.According to Section 84 of The Central Goods and Services Tax Act, 2017, what happens if the tax amount is reduced after a revision?
Q3.Which of the following is true about recovery proceedings under Section 84 of the CGST Act, 2017 when dues are reduced?
Q4.Under Section 84 of The Central Goods and Services Tax Act, 2017, from which stage do recovery proceedings continue after an appeal is disposed of?