Page 10 - Ch9_POT & TDS-TCS

CCP 09.07.13.00
Mr. Manik provides the following information regarding his tax & other liabilities under GST law as per

Electronic Liability Register:
S.No. Particulars ₹
1 Tax due for the month of May 10,00,000
2 Interest due for the month of May 10,00,000

3 Penalty due for the month of May 10,00,000
4 Tax due for the month of June 10,00,000
5 Liability arising out of demand notice u/s 73 10,00,000
Mr. Manik wants to clear his liability of demand notice u/s 73 first.

Discuss the provision of order of discharge of GST liability u/s 49 (8) of the CGST Act & advice to Mr.
Manik. [CA Inter May 23 Exam]
Answer :-
Legal provision:

Ü As per section 49(8) of CGST Act, 2017, Every taxable person shall discharge his tax and other dues under
GST law in following order, namely
a) self-assessed tax, interest, penalty, fee or any other amount related to returns of the previous tax
periods.

b) self-assessed tax, interest, penalty, fee or any other amount related to returns of the current tax period.
c) any other amount payable including demand determined under section 73 or section 74,
Discussion & conclusion:
Ü In this case, Mr. Manik cannot clear his liability of demand notice u/s 73 first.
Ü Thus, The order of discharge of liability of Mr. Manik will be as under:

a) Tax, interest and penalty for the month of May ₹ 30,000
b) Tax due for the month of June ₹ 35,000
c) Liability arising out of demand notice u/s 73 ₹ 48,000

08. Section 49(9):- Principal of Unjust Enrichment for payment under GST

CCP 09.08.14.00
Are principles of unjust enrichment applicable for payment made under GST? [Study Mat]
Answer:
Yes.

Ü As per Section 49(9) of the CGST Act, 2017, every person who has paid the tax on goods or services or
both under CGST Act shall be deemed to have passed on the full incidence of such tax to the recipient of
such goods or services or both unless the contrary is proved by him.
Author's Note (not part of ans):-

Ü The principle of unjust enrichment means that no one should be unjustly enriched at the expense of
another.
Ü It also means that no person should take advantage of the position of another person which causes some
loss to one party and gain to another party.

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