Section 79 of CGST Act, 2017 : Section 79: Recovery Of Tax

Explanation using Example

Imagine a scenario where a business owner, Mr. Sharma, has failed to pay his Goods and Services Tax (GST) dues to the government within the prescribed time. The amount totals to INR 1,00,000. Despite reminders, Mr. Sharma does not clear his dues.

The proper officer, under the authority of Section 79 of The Central Goods and Services Tax Act, 2017, decides to take action to recover the amount:

1. The officer discovers that the government owes Mr. Sharma a refund of INR 50,000 for a previous tax period. The officer decides to deduct this amount directly from the refund to partially recover the dues.
2. Additionally, the officer finds that Mr. Sharma has a consignment of goods in a warehouse, which is under the control of the customs authorities. The officer orders the detention and sale of goods worth INR 50,000 to recover the remaining amount.
3. Since the officer has now recovered the full amount of INR 1,00,000 through the above steps, there is no need to proceed with other recovery methods such as distraining property or involving the Collector to recover the amount as if it were an arrear of land revenue.

This example illustrates the practical application of Section 79, where the proper officer has multiple modes at their disposal to recover tax dues from a non-compliant taxpayer.