In a recent notification published in the Extra Ordinary issue of the Andhra Pradesh Gazette on May 17, 2023, the Andhra Pradesh Government has extended the time limit for tax recovery under the Andhra Pradesh Goods and Services Tax Act, 2017. The notification, G.O.Ms.No.221, modifies previous notifications and specifies the new time limits for the issuance of recovery orders.
Extension of Time Limit for Tax Recovery:
In exercise of the powers conferred by section 168A of the Andhra Pradesh Goods and Services Tax Act, 2017, the Andhra Pradesh Government has extended the time limit for issuing orders under sub-section (9) of section 73 of the said Act, pertaining to the recovery of unpaid or short-paid tax or wrongly availed or utilized input tax credit. This extension is made in partial modification of previous notifications issued in Go.Ms.No.264 dated September 11, 2020, Go.Ms.No.174 dated July 14, 2021, and Go.Ms.No.537 dated July 21, 2022.
Financial Year-wise Time Limit Extension:
The notification outlines the new time limits for tax recovery for different financial years. They are as follows:
- Financial Year 2017-18: The time limit for issuing recovery orders for the financial year 2017-18 has been extended until December 31, 2023. This extension allows for additional time to recover unpaid or short-paid tax or wrongly availed or utilized input tax credit for the specified period.
- Financial Year 2018-19: For the financial year 2018-19, the time limit for issuing recovery orders has been extended until March 31, 2024. This extension provides an extended period for the recovery of tax liabilities or incorrect input tax credit claims for the specified year.
- Financial Year 2019-20: The time limit for issuing recovery orders for the financial year 2019-20 has been extended until June 30, 2024. This extension grants further time to recover outstanding tax amounts or rectify incorrect input tax credit utilization for the specified period.
Rationale and Implications:
The extension of the time limit for tax recovery under the Andhra Pradesh Goods and Services Tax Act, 2017, is a measure taken on the recommendations of the Goods and Services Tax Council. It aims to provide additional time to the authorities for the recovery of unpaid taxes, short-paid taxes, or erroneously claimed input tax credit. This extension allows for a more comprehensive and diligent process of tax recovery, ensuring compliance and revenue collection.
Conclusion:
The Andhra Pradesh Government’s notification, G.O.Ms.No.221, published in the Extra Ordinary issue of the Andhra Pradesh Gazette, extends the time limit for tax recovery under the Andhra Pradesh Goods and Services Tax Act, 2017. By modifying previous notifications, the government has provided extended time limits for the issuance of recovery orders for specific financial years. This step enables the authorities to effectively recover unpaid taxes and rectify incorrect input tax credit utilization, ensuring compliance and revenue integrity.
