GST Officials Directed Not To ‘Forcefully’ Collect Unpaid Tax During Search

Bhubaneswar: Following complaints of harassment by officials for recovery of tax dues from tax-payers, the GST department has issued a notice preventing the tax officers from recovery of unpaid taxes during search or inspection.

In a departmental note to principal commissioners/commissioners of Central GST (all zones), the commissioner, GST Investigation, has said the officials would not collect the unpaid taxes from taxpayers unless voluntarily done during the course of search or inspection or investigation proceedings.

The officials were also warned of facing disciplinary action in case of a complaint filed by a taxpayer against him in this regard, the note stated. A taxpayer can voluntarily pay tax liabilities ascertained by him or when apprised by tax officers during or after the raids by following due legal proceedings, it added.

As per the GST law, a taxpayer can voluntarily pay unpaid taxes or in response to the show-cause notice issued by the GST department by filing the voluntary tax payment form DRC-03, a TNIE report stated.

It may be noted that Gujarat and Telangana high courts have taken cognisance of such matters in the past and asked GST officials to refrain from using violence and coercive methods against taxpayers for recovery of unpaid tax dues.