The Central Board of Indirect Taxes & Customs (CBIC) has issued new guidelines to prevent premature GST demand recovery proceedings. Under these guidelines, GST officers must obtain approval from higher authorities before initiating recovery proceedings within three months of issuing a GST demand notice. The CBIC aims to prevent undue harassment of taxpayers by ensuring that early recovery actions are only taken when justified by credible evidence. The guideline outlines situations that could constitute an ‘interest of revenue,’ such as the taxable person closing their business operations or experiencing declining financial conditions.
Source A2ztaxcorp
