Circular No.ES/25/2018-19 April 19, 2018
To: Members of the Council
Sub: Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit
This is to inform you that CBIC has issued Circular No. 42/16/2018- GST dated 13th April, 2018 on the above mentioned subject.
Your attention is invited to the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) relating to the recovery of arrears of central excise duty /service tax and CENVAT credit thereof, CENVAT credit carried forward erroneously and related interest, penalty or late fee payable arising as a result of the proceedings of assessment, adjudication, appeal etc. initiated before, on or after the appointed date under the provisions of the existing law.
In this regard, the Board received representations from members of Trade seeking clarification on the procedure for recovery of such arrears in the GST regime.
The issues have been examined and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, (hereinafter referred to as the “CGST Act”) hereby specifies the procedure to be followed for recovery of arrears arising out of proceedings under the existing law.
You may download the Circular No. 42/16/2018- GST to view the procedures to be followed for recovery of arrears arising out of proceedings under the existing law.
This is for your information.
Thanking you,
Yours faithfully,
S. BALARAJU
EXECUTIVE DIRECTOR
