Goa GST Department Streamlines Dues Settlement Process

Introduction

The Goa Goods and Services Tax (GST) Department recently issued Trade Circular GVAT No. 6 of 2023-24 on February 29, 2024. This circular introduces a streamlined process for settling dues under the Goa (Recovery of Arrears of Tax, Interest, Penalty, Other Dues through Settlement) Act, 2023.

Addressing Industry Challenges

Responding to numerous concerns raised by taxpayers and dealers regarding rectification of demand orders, the circular aims to address challenges arising from erroneous demand orders issued by zonal and field formations. It acknowledges apparent errors, including clerical and arithmetical mistakes, in demand orders issued for the financial year 2017-18.

Provisions and Guidelines

The circular empowers authorities under Section 161 of the DGST Act to rectify errors apparent on the face of the record in decisions, orders, notices, certificates, or any other documents. Rectification can be initiated either by the authority’s own motion or upon notification by an officer or affected person within three months from the date of issue.

Key Considerations

1. Transparent Process: Ward officers are required to document reasons in writing before initiating suo-moto rectifications, ensuring transparency and accountability.
2. Timely Submission: Registered persons must submit applications for rectification within three months of the order, and rectification orders must be passed within six months of the original order.
3. Nature of Mistakes: Rectification is limited to errors apparent on the face of the record, excluding debatable points of law or undisputed questions of fact.
4. Appeal Consideration: Rectification cannot be pursued if an appeal has been preferred by the registered person to higher appellate forums.

Types of Rectification Cases

1. Fully Deposited/Reversed Amounts: Cases where the demand amount has already been fully deposited/reversed but not considered in the demand order.
2. Arithmetical Errors: Cases involving arithmetical errors or errors in the calculation or heads (IGST, CGST, DGST) in the demand order.

Conclusion

The Trade Circular issued by the Goa GST Department emphasizes a commitment to simplifying the rectification process under the DGST Act, 2017. By providing clear guidelines and procedures, the department aims to minimize unnecessary litigation and ensure fairness in tax settlements for taxpayers and dealers alike.