Sir Can the proper officer apply both the sections 73 and 76 in case of tax collected but not paid to the Govt.?Pl tell me clearly as to when to apply section 73 and when to apply section76 in case of Tax collected but not paid to the Govt?

Sir Can the proper officer apply both the sections 73 and 76 in case of tax collected but not paid to the Govt.? Pl tell me clearly as to when to apply section 73 and when to apply section76 in case of Tax collected but not paid to the Govt?

Reply—

Sr. No.	Notice u/s 73	Notice u/s 76
1.	Under section 73 of CGST Act, proper officer can serve notice to a person where it appears that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.	Under section 76 of CGST Act, every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not.. Where any amount is required to be paid to the Government under this section and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act.
2.	The proper officer shall issue the notice under this section at least three months prior to the time limit specified in sub-section (10) for issuance of order.	The proper officer shall issue an order within one year from the date of issue of the notice.
3.	under sub section 73(5) of CGST Act, the person chargeable with tax may, before service of notice by proper officer pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax. (refer rule 142(2) of CGST Rules)	There is no provision under section 76 of CGST Act

Posted Date: Apr 16, 2020

Sir Can the proper officer apply both the sections 73 and 76 in case of tax collected but not paid to the Govt.?Pl tell me clearly as to when to apply section 73 and when to apply section76 in case of Tax collected but not paid to the Govt?

Reply—

Sr. No.	Notice u/s 73	Notice u/s 76
1.	Under section 73 of CGST Act, proper officer can serve notice to a person where it appears that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.	Under section 76 of CGST Act, every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not.. Where any amount is required to be paid to the Government under this section and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act.
2.	The proper officer shall issue the notice under this section at least three months prior to the time limit specified in sub-section (10) for issuance of order.	The proper officer shall issue an order within one year from the date of issue of the notice.
3.	under sub section 73(5) of CGST Act, the person chargeable with tax may, before service of notice by proper officer pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax. (refer rule 142(2) of CGST Rules)	There is no provision under section 76 of CGST Act