Recovery of tax :
If demand is not paid, department can start recovery proceedings.
As per section 79(1) of CGST Act, the proper officer shall proceed to recover the amount by one or more of the modes mentioned below: –
Deduct from other amount payable – The proper officer may deduct or may require any other specified officer to deduct the amount so payable from any money owing to such person which may be under the control of the proper officer or such other specified officer – section 79(1)(a)of CGST Act.
Detaining and selling goods under control of department – The proper officer may recover or may require any other specified officer to recover the amount so payable by detaining and selling any goods belonging to such person which are under the control of the proper officer or such other specified officersection 79(1)(b)of CGST Act.
Garnishee proceeding s – The proper officer may, by a notice in writing, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government either forthwith upon the money becoming due or being held, or at or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount- section 79(1)(c)(i) of CGST Act.
Every person to whom the notice is issued under this section shall be bound to comply with such notice, and in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or
requirement to the contrary- section 79(1)(c)(ii) of CGST Act.
In case the person to whom a notice under this section has been issued, fails to make the payment in pursuance thereof to the Central or a State Government, he shall be deemed to be a defaulter in respect of the amount specified in the notice and all the consequences of this Act or the rules made thereunder shall follow section 79(1)(c)(iii) of CGST Act.
The officer issuing notice (garnishee notice) may, at any time or from time to time, amend or revoke such notice or extend the time for making any payment in pursuance of the notice- section 79(1)(c)(iv) of CGST Act.
Any person making any payment in compliance with a garnishee notice issued under section79(1)(i) shall be deemed to have made the payment under the authority of the person in default and such payment being credited to the appropriate Government shall be deemed to constitute a good and sufficient discharge of the liability of such person to the person in default to the extent of the amount specified in the receipt- section 79(1)(v)of CGST Act.
Any person discharging any liability to the person in default after service on him of the notice issued under section79(1)(i) shall be personally liable to the Central or a State Government to the extent of the liability discharged or to the extent of the liability of the person in default for tax, interest and penalty, whichever is less- section 79(1)(vi)of CGST Act.
Where a person on whom a notice is served under section 79(1)(i) proves to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he did not hold any money for or on account of the person in default, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the said person or be held for or on
account of such person, nothing contained in this section shall be deemed to require the person on whom the notice has been served to pay to the credit of the appropriate Government any such money or part thereofsection 79(1)(vii)of CGST Act.
Distrain and sale any property belonging to the person – The proper officer may, on an authorisation by the competent authority and in accordance with the rules made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person- section 79(1)(d)of CGST Act.
Certification proceedings – recovery as arrears of land revenue – The proper officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business or to any officer authorized by the Government and the said Collector or the said officer, on receipt of such certificate, shall proceed to recover from such person the amount specified there under as if it were an arrear of land revenue- section 79(1)(e)of CGST Act.
Application to Magistrate to recover amount as fine – Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the proper officer may file an application to the appropriate Magistrate and such Magistrate shall proceed to recover from such person the amount specified thereunder as if it were a fine imposed by him- section 79(1)(f)of CGST Act.