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returns, along with payment of tax, interest, after the best judgement is issued is also increased to
applicable penalty, and late fees. Availment of ITC 60 days by the Finance Act 2023.
shall be subject to limitation set in section 16(4).
Extension of time limit for demand u/s 73
Additionally, as per the Finance Act 2023, the time
Demand and recovery proceedings are an integral
limit for revocation and the manner and procedure part of the Goods and Services Tax (GST) law. These
shall be separately prescribed. The registration
provisions empower the GST authorities to demand
revocation procedure, which was hitherto governed any tax or penalty that may be due from the
by circular no. 148/04/2021 dt. 18-05-21would be taxpayers, who have failed to comply with the
replaced by another procedure yet to be notified.
provisions of the GST Act. The demand and recovery
Changes in best judgment assessment proceedings play a crucial role in ensuring that the
Best Judgment Assessment Order is issued in cases taxpayers do not evade their tax liabilities and the
of non-filing of returns, whereby the department government is able to collect the due taxes to meet
issues an assessment order to the best of their its revenue targets.
judgment based on available information. Normally, However, the deadline for issuing notices and orders
if the taxpayer files the correct return within 30 days, under section 73 was fast approaching. This could
then the order is deemed to be dropped. Many
have been a useful relief for taxpayers who would
taxpayers failed to do so, and therefore this demand want to close the proceedings for FY 2017-18 or
order is still outstanding on the portal. For such other financial years since a lot of time has lapsed. On
taxpayers, the only option was to file an appeal
the other hand, the Government machineries have
against this order, which is tedious in cases where only now begun to spin into action. Therefore, they
the correct return was eventually filed but after 30 have extended the deadline for issuing the notices
days.
under Section 73 for various financial years (chart
For such taxpayers, an amnesty scheme is enclosed).
introduced whereby they can file the correct return The extension of the deadline for issuing notices by
till 30 June 2023 and their proceeding would be the government can have a negative impact on
deemed to be dropped. The new notification states
taxpayers. While the extension may provide relief to
that, irrespective of whether any appeal has been the authorities who were struggling to meet the
filed, or whether, the said appeal has been decided,
original deadline, it can create uncertainty and
if the return is filed before 30-06-2023, along with confusion for the taxpayers who were expecting to
interest, then the assessment order shall be deemed be relieved of the litigations spinning from notices for
to have been withdrawn and no further action would
old financial years, never getting to settle.
be needed. For future, the days to file the return

Year Particulars Previous time limit Revised time limit

FY 2017-18 Issue of SCN Originally 05 / 07 Nov 2022 (later extended to 30 Sep 2023
30 July 2023)

Issue of order Originally 05 / 07 Feb 2023 ( later extended to 31 Dec 2023
30 Sep 2023)
FY 2018-19 Issue of SCN 30 Sep 2023 31 Dec 2023

Issue of order 31 Dec 2023 31 Mar 2024
Issue of SCN 31 Dec 2023 31 Mar 2024
FY 2019-20
Issue of order 31 Mar 2024 30 Jun 2024

When you cease to dream you cease to live. 55