Penalty on Harassment by GST Officer in Grant Registration

Penalty on Harassment by GST Officer in granting GST Registration

• GST department was fined by the Allahabad high court for harassing people by copying their electricity bills in order to obtain GST enrollment. The petitioner Ranjana Singh is engaged in the business of providing employment through consulting, which falls under the ambit of the UP. GST Act. The application has been submitted to GST registration facilitate under the GST Act via the internet.
• Following the submission of the application, an examination of the applicant’s business premises will be conducted, and a notice will be issued to give particular details and supporting documentation. The applicant’s application was denied after responding to a submission through the impugned order, and the applicant chose to appeal to the respondent, which was likewise denied.

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Reduction in compliance of obligation under Atmanirbhar Scheme

• The applicant applied for GST enrollment under section 25 of the Act, read with rules 8 and 9 of the Goods and Service Tax Rules, 2017, and provided all of the required papers, including an Aadhaar card, a PAN card, and a house tax receipt.
• As a consequence, on the inspection day, all necessary information was provided via serving officer. The applicant was given notice that he or she needed to submit electricity bills, house tax bills, or any other documentation related to the business. Against the answer, the applicant provided the information and documents required, but the challenged order was not refused to accept due to the non-submission of an electricity bill.
• Justice Piyush Agarwal believes that the applicant provided all of the documentation required by the act and the legislation, as well as compliance with the show cause notice, and that the application should not be denied without pointing out any errors or flaws.
• Honorable High court stated that the two state officials were just looking to harass the petitioner, which would not be tolerated at any cost. The respondents in this case have the same mindset as the respondents in the previous case, as officers who come in as state officials must perform properly and in line with the terms of the act and the rules.
• “The writ petition is allowed with a cost of Rs. 15,000/-, which must be deposited with the Allahabad High Court State Legal Services Committee within 20 days after today.” The respondents are free to seek reimbursement from the erring Officer.”

Conclusion 

• Unnecessary harassments by the GST Officer for the copy of electricity bill for granting GST Registration, penalty imposed 15000/- for officer by the Allahabad HC.
• The writ petition is allowed with cost of Rs. 15,000/-, which shall be deposited before the High Court State Legal Services Committee, Allahabad within a period of 20 days from today.
• Basic Respondents are at liberty to recover the cost from the erring GST Officer.

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Understanding Section 63 of the CGST Act, 2017

Section 63 of the Central Goods and Services Tax (CGST) Act, 2017 focuses on the assessment of unregistered persons who are liable to pay GST but have not registered. The tax authority can assess the tax liability through a notice when they believe a person is evading GST obligations. Steps to Respond to a Notice Under Section 63:

Understand the Notice and Reasons

Read the Notice Thoroughly and Review the reason for the notice and the tax liability mentioned. then Identify Liability: Determine why the department considers you liable to pay tax under GST. Timeframe: Note the response deadline (usually 15–30 days).

Prepare Supporting Documents

Gather all relevant documents to substantiate your case, such as:

• Business Registration Documents: PAN, Aadhaar, partnership deed, or incorporation certificates.
• Invoices and receipts: For the period mentioned in the notice.
• Bank Statements: Reflecting transactions for the period in question.
• GST-Related Documents: If already registered, provide your GSTIN and previously filed returns.

Draft Your Response

• Provide Clear explanations:
  • Detail your business activities and turnover.
  • Justify why you believe you are not liable under GST, if applicable.
  • If registered later, mention the date and furnish your GSTIN.
• Acknowledge Liability (if applicable):
  • If you agree with the notice, calculate and confirm the tax liability.
  • Include interest and penalties as required.

Respond via the Prescribed Mode

• Online Response: Log in to the GST portal and navigate to the “Notices and Orders” section to reply.
• Offline Response: Submit a physical response at the designated GST office if instructed in the notice.

Payment of Dues (if applicable): If the assessment concludes that you are liable, pay the tax amount along with interest and any penalties. Use Form GST DRC-03 for voluntary payment under GST.

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