Page 40 - GSTL_11th June 2020_Vol 37_Part 2

J48 GST LAW TIMES [ Vol. 37
(g) Recovery of tax by way of application to the appropriate magistrate,
who in turn shall proceed to recover the amount as if it were a fine
imposed by him;
(h) Recovery of tax via enforcing the bond or instrument executed un-
der the Act or any rules or regulations made under the Act;
(i) Recovery of tax done by the proper officer of the State Government
or Union Territory Government, wherein, any CGST arrears will be
recovered as if it were an SGST/UTGST arrear and vice versa by
way of cross empowerment;
(j) Such an amount will be recovered, and then later credited to the ac-
count of the Central Government;
(k) In case the amount recovered by this means, is less than the amount
due, then the amount will be apportioned among the Central Gov-
ernment and State/UT Government in proportion to the amount
due to each authority;
(l) If the company is under liquidation, the Commissioner shall notify
the liquidator for recovery of taxes, interest, penalties and any other
amount due under the Act for recovery in a prescribed form.
Payment of tax by Instalments
If the taxpayer cannot pay all the GST dues (tax/interest/penalty) in a
lump sum or within the stipulated date, then he can file an application to the
Commissioner requesting to pay in instalments. In terms of Section 80 of the
CGST Act, 2017 read with Rule 158 of the CGST Rules, 2017 with Form GST
DRC-20, the Commissioner can extend the due date for payment or allow the
taxpayer to pay in instalments. The reasons for accepting/rejection of such appli-
cation have to be provided in writing. When paying in instalments, the taxpayer
has to remember that :
 Instalments are payable every month;
 Only a maximum of 24 instalments are allowed - i.e., the time of
payment can be extended for maximum 2 years;
 Interest @ 18% must be paid along with the instalment;
 All instalments must be paid on time. A single default will cause the
instalments to cease and the entire outstanding balance will become
due on that date;
 Notice will NOT be issued for this default as it is already an accrued
arrears;
Apart from these customary recovery procedures there are also some
special provisions for recovery of tax under GST which are discussed as under.
(a) Void transfer of property
As per Section 81 of the CGST Act, 2017, the department can seize
properties belonging to the defaulter to recover the due tax amount.
Sometimes, in order to avoid such seizures, the taxpayer transfers
the property via sale, mortgage, exchange etc. after the amount has
become due - the intention being to evade paying the tax amount
which is due. To handle such a scenario, the provisions have been
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