AMENDMENT OF SECTION 83 OF CGST ACT

Articles

AMENDMENT OF SECTION 83 OF CGST ACT

06/02/2021

AMENDMENT OF SECTION 83 OF CGST ACT:- PROVISIONAL ATTACHMENT OF BANK ACCOUNT

(1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed.

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section.

Now Sub section 1 is substituted, now department empowered that they can provisionally attach property and bank account of ANY PERSON (122(1A)) Includes Director of the company, Manager who is looking after gst matters of the company or gst consultant, If they commit four specified offenses.

(i) supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply;

(ii) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act or the rules made there under;

(iii) takes or utilises input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made there under;

(iv) takes or distributes input tax credit in contravention of section 20, or the rules made there under;

Penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on.

Provisional attachment order is valid for 1 Year from the date order is being passed.