Table of Contents
- What Should You Do If You Receive A Summons For The Gst?
- What Is A Summon?
- How Gst Summon Is Different From A Gst Notice?
- When May I Expect To Receive A Summons?
- A Gst Taxpayer Should Know About A Gst Summon Features.
- Who Could Be The Summon Consultant For Gst?
- What Is The Procedure For Responding To A Gst Summons?
- Penalty For Failure To Comply Gst Summons
- What Are The Power Of The Officer To Summon Under The Cgst Act 2017?
- What Should You Do If You Receive A Summons For The Gst?
What should you do if you receive a summons for the GST?
- Normally Our email inboxes are filled with GST reminders for GST taxpayers. Unfortunately, we constantly overlooked vital notices for other taxpayers.
- Is it, however, merely a notice that is extremely crucial? Do you think you're losing out on a "summon"? How to deal with Goods and Services Tax summon? Let's know more about it before we get began.
What is a summon?
- A summons is an order to appear or mark your presence before a judge or magistrate for any enquiry or action, whether civil, criminal, or both.
- In some parts of the world, it's also known as a CAN (Court Attendance Notice). A summons, also known as a citation in legal language, is a legal document that requires the signatory to appear at a given place, at a certain time, and for the intended objective.
Mainly there are four various kinds of summonings, as mentioned below.
- Administrative summons
- Judicial Summon
- Civil Summon
- Citation
GST summons issued is a kind of Administrative summon under GST Act. Any registered individual can be summoned to appear before the officer in charge and show evidence or documents, depending on the circumstances.
How GST summon is different from a GST notice?
- This is to be notices that all GST summons are GST Notices, but all GST notices are not summoned.
- GST summon is an normal official call upon or invitation to mark GST registered person for his presence at court or before an GST Officer. But GST notice is usually information from the authority/court as the case may be. GST Notice may or may not result in a GST summon.
- According to Goods and services tax Act, a summon shall be deemed to be a "legal proceeding" under provisions of u/s 193 & 228 of the Indian Penal Code (45 of 1860).
- On the opposite, the above doesn't apply to GST notice.
When may I expect to receive a summons?
- When a taxpayer is the subject of any inquiry procedures, a GST summons can be issued u/s 70 of the CGST ACT 2017. An inquiry could be launched if any non-satisfaction of any ground relating to compliance, a legal requirement or the notice provided is not fulfilled.
Following are mentioned matters on which inquiry can be started, if the proper officer considers it necessary;
- GST Refund is wrongly made with or without the intent to defraud.
- Inconsistent declaration in GSTR-1 & E-way bill GST portal etc
- Non-payment or short payment or without the intent to defraud of GST tax liability.
- ITC taken is wrongly utilized or availed.
- Delay in submitting of GSTR-3B & GSTR-1 consecutively for more than 6 Months
- Differences in ITC claims made in GSTR-2A/2B vis-a-vis GSTR-3B
A GST taxpayer should know about a GST Summon Features.
- As per GST circulars, summons should be used only as a last resort when it is absolutely needed.
- All the persons to whom GST summons are issued shall be bound to attend, either by an authorized agent or in person, if the GST taxpayer is not a natural person.
- An GST officer of the rank of superintendent & above are empowered to issue a GST summon.
- If GST registered person are not comfortable with the English language, He can record his statement in a local language also.
- Even if the GST taxpayer files all the required documents with the GST officer as stated n the Goods and Services summons, the GST registered person shall attend the summons.
- GST Summons should be issued to taxpayer even in the investigation imitate against some other person.
- The person to whom summoned is issued to file all relevant required documents or information’s asked for. If it is not available than give reasonable time needed to provide the same.
- A statement is usually recorded in the these kind of summons.
- Statement recorded is usually admissible as evidence & it can be used against person in legal proceedings.
- The statement recorded should be voluntarily given & not under coercion or threat or pressure.
- Person should be summoned & a statement taken during normal working times.
Who could be the summon consultant for GST?
- A practising Chartered Accountant, an Advocate, a CWA or any other professional with the required necessary experience & skills as would be considered sufficient to deal complexity of the such kind of case.
What is the procedure for responding to a GST summons?
- Any taxpayer who receives a summons should contact with a GST summons consultant first. Who knows if a legal practitioner, whether a practising CA or an Advocate, is aware of the purpose and justification for such a summons? (According to the legislation, the power to call can only be used when the assessee's presence is required.)
- A taxpayer should be aware that a summons is a legal process that must be followed. The taxpayer must block his calendar for the notified date after the taxpayer and the practitioner are satisfied with the summons' grounds and purpose.
- The taxpayer must provide the practitioner with all relevant facts and numbers in order for the practitioner to compile and provide objective evidence and statements to the authority.
- He must be ready with all required proof, documents, and statements before the authorities before the call date.
- Under the authority's strict inquiry, the taxpayer is not allowed to testify or sign any documents until he or she has read and understood everything.
Penalty for failure to comply GST summons
- If the GST Taxpayer is not a natural person, all persons to whom summons are issued are required to appear, either in person himself or via an authorised representative.
- If a GST taxable person fails to appear before a officer of central tax when summoned to offer evidence or provide a document in an inquiry, he or she is subject to pay a penalty of INR 25000 u/s 122 (3) of the CGST Act, 2017.
What are the Power of the officer to summon under the CGST ACT 2017?
According to Section 70 of the CGST ACT 2017: Power to summon assessee to Provide any evidence & in order to provide the documents.
- Proper officer under CGST Act shall have power to issue summon to any induvial whose presence he requires necessary to provide produce a document or an evidence or any other thing in any inquiry in the same manner, as given in the case of a civil court procedure according to the provisions of the Code of Civil Procedure, 1908 (5 of 1908).
- Enquiry under section 70(1) shall be taken as to be a "Legal proceeding" under the meaning of section 193 & 228 of the Indian Penal Code (45 of 1860).
What should you do if you receive a summons for the GST?
- Goods and Services Tax Summon Consultant – GST Taxpayer shall take the suggestions the GST Tax consultants to GST justification & know the reason of the summon.
- You should the Block your calendar for appointment at specified date – GST Taxpayer shall block his schedule calendar for the prescribe due date.
- Have your words ready – As we emphasize from the starting, take the advices particularly be prepared with your statements with GST authorities & performance to be done and disclaim wisely when you are not confirmed about the same.
- Be mindful while recording your statement – GST Taxpayer should be cognizant while recording your statement; this could be used against you.
- Don't promise to pay any taxes or penalties – During the GST summon inquiry proceeding, do not explicitly promise to pay any GST or related penalties; You should always take proper advises with your GST Tax advisor about this.
- Be confident with a fearless attitude – GST Taxpayer shall not be panic in any circumstances & required to act wisely & be confidently with a fearless attitude.
- Need to Produce evidence – GST Taxpayer shall produce before the GST Tax consultants all the facts, figures, evidence and state the absolute truth.
- Be handful information & Documents – GST Taxpayer shall be a handful with all the needed information and documents.
