GST is required to be paid on the basis of self-assessment. If the taxpayers, assess them correctly with the best software like Tally.ERP 9 then there is going to be no issue, however, if the payment made is short or the input credits have been used wrongly then the GST officers will make sure to initiate the demand & recovery provisions against the person assessing.

So, if you want to know the demand under GST can be raised, then keep reading.

Times when Demand under GST is Raised

• If There Is No Fraud (Section 73) – When the tax is unpaid, or the amount paid is lesser, or in case a refund has been made wrongly. Also of the input tax credit has been utilized wrongly. In these cases, a showcase notice will be issued following which three months time will be given. If the amount is paid within 30 days, then there will be no penalty, but otherwise, a 10% penalty is levied.
• If There Is Fraud (Section 74) – If the statement has been made wrongly willingly or fraud or facts are suppressed then a showcase notice will be issued. No notice will be issued if the taxpayer voluntarily pays the penalty plus tax before the issue of notice. The penalties range from 15 to 100% in case someone makes a fraud like this.
• General Provision For Tax Determination (Section 75) – If the case has been proven to be non-fraud then the original notice will get assumed to be under section 73. If the taxpayer requests by writing then a personal hearing will be given. All the demands will be clearly written in the notice regarding the withstanding amount. Thus it should be paid by the taxpayers.

So these are the times when the government can raise a demand under GST. With the proper tally solutions, this kind of a situation will never arise, and people will never again miscalculate their taxes. So always avoid the frauds and the wrong calculations to skip paying penalties that are issued.

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