Sub.: Withdrawal of notices of audit assessment under the Gujarat VAT Act for F.Y. 2016-17 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017).
Ref.: (1) Government Resolution No. APB/102020/108/ 195224/K dated 5th June, 2020.
(2) Government Resolution No. GST-102019-1006-TH dated 6th December, 2019.
The Commissioner of Commercial Tax and any officer authorized in this behalf, is empowered to undertake audit assessment under sub-section (2) of section 34 the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as "the Act") for F.Y. 2016-2017 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017). The time limit for completion for such audit assessment ends on 31st march, 2021 and 31st march, 2022 respectively.
2. Notices for audit assessment have been issued by the concerned assessing officers under sub-section (2) of section 34 of the Act requiring the dealer to appear with books of account and all evidences in support of the returns or such other evidences as specified in the notices. The notices for the above period have already been served in all such cases.
3. The COVID-19 pandemic has spread across the globe including India causing immense loss to lives and health of people, adversely impacting business and causing disruption in supply chain. Now, there is also necessity to comply with the norms of social distancing. Further, the Department is implementing the Goods and Services Tax and therefore, the pending work under the Act and the Central Sales Tax Act, 1956 (herein after referred to as "the CST Act") needs to be disposed expeditiously.
4. The Gujarat Chamber of Commerce and Industries, other trade associations and tax practitioners have represented to the Government to accept the liability as per the return furnished under the Act and not to undertake the detailed process of assessment in case of small dealers to avoid inconvenience and remove uncertainty in the mind of dealers.
5. The Government of Gujarat having considered the above, accepted the suggestion made by the Committee constituted under the chairmanship of Shri Hashmukh Adhia and has issued the resolution referred to at Sr. No (1) above in this regard.
6. Accordingly, it has been decided to withdraw the notices of audit assessment issued under sub-section (2) of section 34 of the Act for the following category of registered dealers:
A registered dealer:-
(i) for F.Y. 2016-2017, having gross total turnover less than Rs. 10 crore during F.Y. 2016-17;
(ii) for F.Y. 2017-2018, having gross total turnover less than Rs. 2.5 crore during F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017).
7. However, the withdrawal of notices given at para (6) above shall not be applicable to the following dealers:-
(a) A registered dealer in whose case assessment has been initiated as a result of proceedings under section 67 of the Act or under sub-section (2) of section 9 of the CST Act read with section 67 of the Act, commonly known as enforcement case, before the issuance of this circular;
(b) A registered dealer who has availed the facility of reimbursement, exemption or deferment of payment of tax under any industrial incentive scheme implemented through a notification or a resolution issued by the Government of Gujarat;
(c) A registered dealer who has applied under "Vera Samadhan Yojana -2019" referred to at Sr. No. (2) above, in the category of "self-declaration of liability" and has admitted the tax liability under the Act for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017);
(d) A dealer whose registration is cancelled under clause (i) of sub-section (5) of section 27 of the Act;
(e) A registered dealer who has made purchases from a dealer whose registration is cancelled under clause (i) of sub-section (5) of section 27 and has claimed tax credit during F.Y. 20162017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) on all such purchases;
(f) A registered dealer in whose case assessment proceeding is undertaken so as to give effect to the directions of any appellate authority including Tribunal or the Court;
(g) A registered dealer in whose case aggregate demand raised at the end of audit assessment under section 34 of the Act and under the CST Act for the financial year 2015-16 exceeds Rs. 10 lakh;
(h) A registered dealer who has transferred the amount of credit of value added tax (VAT) exceeding Rs. 10 lakh under the provision of section 140 of the Gujarat Goods and Services Tax Act, 2017;
(i) A registered dealer who has claimed refund (including the claim for provisional refund) of an amount exceeding Rs. 1 lakh under the Act or under the CST Act; or
(j) A registered dealer who has failed to file return in respect of any period during the said year unless he has filed annual return, for the said year.
(hh) A registered dealer in whose case inout tax credit (Which was carried forward ) exceeding rupees five thousand was adjusted towards tax liabilities for the year 2015-16 due to audit assessment of the said year under the Act or under the CST Act;
8. Notwithstanding anything contained in para (6), the notices of audit assessment issued under sub-section (2) of section 34 of the Act for F.Y. 2017-18 shall not be withdrawn in case of a registered dealer who was engaged in the business of sales of goods specified in Schedule III of the Act during the financial year 2017-18.
9. The provision of this circular shall not be applicable to the cases where assessment orders are already issued under section 34 of the Act before the date of issue of this circular.
10. Notwithstanding the decision to withdraw the assessment notice, if any registered dealer prefers his assessment to be carried out under section 34 of the Act in order to seek refund, he shall intimate electronically regarding it to the assessing authority on or before 31st August, 2020.
11. All assessment officers are hereby directed to withdraw notices for audit assessment issued to the dealers as mentioned above after verifying necessary details and intimate them accordingly.
12. Withdrawal of cases for audit assessment under the Act shall not affect the assessment proceedings under the CST Act.
(J. P. Gupta)
Commissioner of Commercial Tax,
Gujarat State, Ahmadabad.
Circular No.: 30/2020 CORRIGENDUM TO CIRCUIAR NO. 23/2020 DATED 3rd JULY,2020 issued vide No. /CCT/Admin/Withdrawal of notice/VAT assessment/2020-21/B. 468-reg.
Sub.: Corrigendum to circular No. 28/2020 dated 3rd july, 2020 issued vide No. /CCT/Admin/ Withdrawal of notice/VAT assessment/2020-21/B. 468-reg.
In Para (7), afler clause (h), the following clause shall be inserted, namely:-
(hh) A registered dealer in whose case inout tax credit (Which was carried forward ) exceeding rupees five thousand was adjusted towards tax liabilities for the year 2015-16 due to audit assessment of the said year under the Act or under the CST Act;"
Sd