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The books of accounts of my company were destro...

The books of accounts of my company were destroyed by fire in May 2018. As a result, I can not estimate the amount of GST I am liable to pay. Can I pay GST on a provisional basis? If yes, what shall be the rate of such payment?

Please advice.

The books of accounts of my company were destroyed by fire in May 2018. As a result, I can not estimate the amount of GST I am liable to pay. Can I pay GST on a provisional basis? If yes, what shall be the rate of such payment?

Please advice.

0
Chiranjibi Jun. 26, 2018

Yes, there is a provision in the CGST act which states that if the registered person can not estimate his tax liability, he can pay GST at provisional basis to the concerned authority.

You will have to write to the proper authority (of your jurisdiction) prroviding reason for payment of tax on a provisional basis.

After your request, the proper officer, if satisfied, shall pass an order before 3 months from your application mentioning the rate, or the value on which you have to pay the tax accordingly.

Sheetal bhasin Jun. 26, 2018

What happens if there is difference in the amount of tax liability that is finally assessed and the amount of tax liability provisionally mitigated?

Chiranjibi Jun. 26, 2018

You have to execute a bond in the manner prescribed. This acts as a security and it will bind you for payment of the difference between the amounts of tax liabilities finally assessed and provisionally assessed. This difference should be then paid by you (or added to your credit if you have paid in excess), the bond acts as a security all this while.

To quote the CGST act on the matter, Section 60(2) states:

The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.

Hope You are satisfied with the answer. Thank You.

The books of accounts of my company were destroyed by fire in May 2018. As a result, I can not estimate the amount of GST I am liable to pay. Can I pay GST on a provisional basis? If yes, what shall be the rate of such payment?

Please advice.

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