Sub.: Partial audit assessment under the CST Act for F.Y. 2016-17 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) for the dealers applied under "Vera Samadhan Yojana -2019".
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.
(3) Circular No. 24/2020 dated 3rd July, 2020 on withdrawal of notices for audit assessment under the CST Act.
The Government of Gujarat has declared "Vera Samadhan Yojana -2019" as referred to at Sr. No. (2) (hereinafter referred to as "Vera Samadhan Yojana") for the purpose of admitting tax liability not shown in the return. Time limit for availing the benefit of Vera Samadhan Yojana ended on 27 January, 2020. Large number of dealers have applied under Vera Samadhan Yojana in the category of "selfdeclaration of liability" and have admitted the tax liability under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30 June, 2017). If the dealers pays his admitted tax liability in twelve installments as specified in Vera Samadhan Yojana, he will get the benefit of remission of interest and penalty pertaining to such admitted tax liability.
2. The Commissioner of Commercial Tax and any officer authorized in this behalf, is empowered to undertake audit assessment under subsection (2) of section 9 of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") read with sub-section (2) of section 34 of the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as "the VAT 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.
3. Notices for audit assessment have been issued by the concerned assessing officers under sub-section (2) of section 9 of the Act requiring the dealers 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.
4. 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 VAT Act needs to be disposed expeditiously.
5. 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.
6. The Government of Gujarat having considered the above, has given its consent to simplify pending assessment proceedings for certain category of dealers.
7. Accordingly, it has been decided to undertake partial audit assessment under sub-section (2) of section 9 of the Act read with section 34 of the VAT Act for the following category of dealers:
A registered dealer:-
(i) (a) for F.Y. 2016-2017, having gross total turnover less than Rs. 10 crore during F.Y. 2016-17;
(b) 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);
(ii) in whose case the notice for audit assessment has not been withdrawn in accordance with the circular referred to at Sr. No (3) above, solely due to the fact that he has claimed inter-State transaction covered under section 3, section 5 or section 6A of the Act against the declaration (i.e. Form C, Form-H or Form-F, respectively) (hereinafter referred to as "inter-State transactions") in his returns for F.Y. 2016-2017 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) and the difference between the amount of the said inter-State transactions claimed in the returns and the amount of inter-State transactions for the said period, being reflected on Tax Information Exchange System (TINXSYS) exceeds rupees ten thousand; and
(iii) who has applied under Vera Samadhan Yojana 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).
8. Conditions for partial audit assessment:
The dealer who desires to avail benefit of the partial audit assessment for F.Y. 2016-2017 and / or F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017) shall:-
(a) furnish an undertaking electronically, in Part A of the Annexure-I enclosed herewith, on or before 31st August, 2020, to preserve and furnish physical copy of his declarations (i.e. Form C, Form-F, Form-H) within fifteen days from the date of receipt of intimation in this regard, relating to inter-State transactions of the above period, being reflected on Tax Information Exchange System (TINXSYS),
(b) furnish the list of transactions and declarations (i.e. Form C, Form F and Form H covered under section 3, section 6A and section 5 of the Act respectively) available with him, electronically, in Annexure-II enclosed herewith, on or before 31st August, 2020, relating to those inter-State transactions, which are shown in the returns furnished for the above period, but the details of which are not being reflected on Tax Information Exchange System (TINXSYS);
(c) furnish on or before 31st August, 2020, the scanned copy of declarations (i.e. Form C, Form F, Form H) covered under clause (b) along with an undertaking in Part A of the Annexure-I enclosed herewith, to preserve and furnish physical copy of the same, within seven days from the date of receipt of intimation in this regard from the assessing officer;
(d) admit and furnish an undertaking electronically, in Part B of the Annexure-I enclosed herewith, on or before 31st August, 2020, to pay liability equivalent to the amount covered under clause (e) on or before 30th September, 2020;
(e) pay, on or before 30 September, 2020,-
(i) (A) tax at the applicable rate to the sales or purchase of goods under the VAT Act on inter-State transactions of such goods shown in his returns furnished for the above period but are not being reflected on Tax Information Exchange System (TINXSYS) and no details of declarations are furnished against such transaction, after deducting tax liability admitted under Vera Samadhan Yojana i.e. tax liability on account of non-submission of declaration, if any, relating to inter-State transactions made during the above period to the extent not covered as admitted tax liability under Vera Samadhan Yojana; or
(B) tax at the rate of 2% on inter-State sales of goods being reflected on Tax Information Exchange System (TINXSYS) but not shown in his returns furnished for the above period, after deducting tax liability admitted under Vera Samadhan Yojana;
(ii) applicable interest on tax liability referred to at sub-clause (i) above; and
(iii) penalty @ 10% on tax liability referred to at sub-clause (i) above; and
(f) furnish an undertaking electronically, in Part C of the Annexure-I enclosed herewith, on or before 31st August, 2020, that he does not have any declaration (other than those being reflected on TINXSYS and other declarations details of which are submitted to the assessing officer) pertaining to the admitted tax liability under Vera Samadhan Yojana, in excess of the amount of tax liability calculated as per para (8) (e) (i), if his admitted tax liability under Vera Samadhan Yojana is more than tax liability calculated as per para (8) (e) (i);
9. For removal of doubt, the following clarifications are made in order to avail benefit of the partial audit assessment by the dealer:-
(i) The dealer shall be required to pay his admitted tax liability in twelve installments as specified in Vera Samadhan Yojana.
(ii) Amount of the admitted tax liability under Vera Samadhan Yojana
is equal to tax liability calculated as per para (8) (e) (i): The dealer shall not be required to pay any amount except the admitted tax liability under Vera Samadhan Yojana.
(iii) Amount of admitted tax liability under Vera Samadhan Yojana is
less than tax liability calculated as per para (8) (e) (i): The dealer shall be required to pay:-
(a) admitted tax liability under Vera Samadhan Yojana;
(b) tax liability as per item (A) or (B) of para (8) (e) (i) of this circular along with the applicable interest and penalty @10% on such tax liability, on or before 30 September, 2020.
(iv) Amount of the admitted tax liability under Vera Samadhan Yojana
is more than tax liability calculated as per para (8) (e) (i): The dealer shall be required to pay admitted tax liability under Vera Samadhan Yojana.
10. Procedure of Partial Audit Assessment:-
i. The assessing officer will send the following details electronically to all the concerned dealer covered under Para (7):-
(a) The summary of inter-State transactions, furnished by the dealer in his returns for F.Y. 2016-2017 and F.Y. 2017-18 (i.e. for the period from 1st April, 2017 to 30th June, 2017); and
(b) The details of inter-State transactions, being reflected on Tax Information Exchange System (TINXSYS).
(v) The dealer shall not be required to furnish the declarations (i.e. Form C, Form-F, Form-H) relating to inter-State transactions being reflected on Tax Information Exchange System (TINXSYS) at time of audit assessment, but the same may be asked at a later date.
(vi) The dealer who desires to avail facility of partial assessment under this circular shall furnish on or before 31st August, 2020,-
(a) an undertaking electronically in Part A of the Annexure-I enclosed herewith, to preserve and furnish physical copy of declarations (i.e. Form C, Form-F, Form-H) available with him;
(b) details of declarations (i.e. Form C, Form-F, Form-H) electronically in Annexure-II enclosed herewith, relating to those inter-State transactions, which are shown in the returns, but the details of which are not being reflected on Tax Information Exchange System (TINXSYS);
(c) the scanned copy of declarations (i.e. Form C, Form-F, Form-H) as specified in Annexure-II; and
(d) an undertaking electronically in the Annexure-I enclosed herewith, to pay admitted liability in cash, as mentioned in clause (e) of para (8).
(vii) The dealer will have to pay admitted liability in cash, as mentioned in clause (e) of para (8), on or before 30th September, 2020.
(viii) On payment of admitted liability in cash by the dealer, the assessing officer will pass an assessment order under subsection (2) of section 9 of the Act.
(ix) The dealer shall be required to pay his admitted tax liability in twelve installments as specified in Vera Samadhan Yojana, in order to avail the benefit of remission of interest and penalty pertaining to such admitted tax liability.
(x) Such assessment proceedings will be restricted to the issue of liability arising out as per para (8) above.
(xi) While passing the assessment order, penalty @ 10% of tax liability referred to at sub-clause (i) of clause (e) of para (8) above shall be charged and no other penalty shall be charged.
11. However, if a registered dealer who has failed to file return in respect of any period during the said year, he shall not be given the benefit of partial audit assessment under the Act unless he has filed annual return for the said year.
12. The decision of partial audit assessment under the Act in case of dealer shall not have any effect on his pending assessment proceedings, if any, under the VAT Act.
(J. P. Gupta)
Commissioner of Commercial Tax,
Gujarat State, Ahmadabad.
ANNEXURE-I
(As per Circular No.: .......................... 28/2020 dated 3rd July, 2020)
Undertaking to preserve and furnish the declaration under the Central Sales Tax Act, 1956 for the F.Y
Name of dealer:
TIN: ...................................
CST No .....................................
I, ............................., (Proprietor / partner / managing director / Trusty / authorized person) of ............................... (Name of the dealer) hereby request for partial audit assessment for the F.Y ................................ under sub-section (2) of Section 9 of the Central Sales Tax Act, 1956 as per the Circular No.: 28/2020 dated 3rd July, 2020, issued by the Commissioner of Commercial Tax, Government of Gujarat in this behalf (hereinafter referred to as 'the circular")
PART A
2. I, hereby give undertaking to preserve and furnish physical copy of declarations (i.e. Form C, Form-F, Form-H) available with me:-
(a) relating to inter-State transactions of the above period, being reflected on Tax Information Exchange System (TINXSYS), within fifteen days from the date of receipt of intimation in this regard; and
(b) relating to those inter-State transactions which are shown in the returns furnished for the above period, but the details of which are
not being reflected on Tax Information Exchange System (TINXSYS), within seven days from the date of receipt of intimation in this regard.
PART B
3. I, hereby also give undertaking to pay on or before 30th September, 2020, tax liability along with the applicable interest and penalty as shown in the Table below:
Table
1
2
3
PART C
(Applicable only to those cases where the admitted liability of the dealer under Vera Samadhan Yojana is higher than tax liability calculated as per para (8) (e) (i) of the circular)
4. I_hereby give undertaking that I do not have any declaration (other than those being reflected on TINXSYS and other declarations details of which are submitted to the assessing officer) pertaining to the admitted tax liability under Vera Samadhan Yojana, in excess of the amount of tax liability calculated as per para (8) (e) (i).
Note:
(i) The dealer who desires to avail benefit of above circular shall be required to furnish an undertaking separately for F.Y. 2016-2017 and F.Y. 2017-18.
(ii) The undertaking shall be furnished electronically to the concerned assessing officer on or before 31st August, 2020.
ANNEXURE-II
(As per Circular No.: 28/2020 dated 3rd July, 2020)
Details of Declarations / Statutory Forms relating to those inter-State transactions, which are shown in the returns, but the details of which are not being reflected on Tax Information Exchange System (TINXSYS)
F.Y ................................
VAT TIN: ..........................
CST No: ..................................
A.1 Inter-state transactions covered under section-3 read with section 8 (4)
*Details are required to be submitted State-wise in alphabetical order.
A.2 Inter-state sale in the course of export covered under section-5 (4)
A.3 Inter-state transactions covered under section 6A