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CMA Final · Indirect Tax Laws and Practice · Accounts and Records

A registered person fails to account for certain goods as required by section 35(1) of the CGST Act, 2017. What may the proper officer do?

The proper officer may determine the tax payable on the unaccounted goods or services as if the person had supplied them. Section 35(6) applies the demand provisions of sections 73, 74 or 74A mutatis mutandis, subject to section 17(5)(h).

  1. ADetermine the tax on the unaccounted goods as if they had been supplied by that person, applying the demand provisions mutatis mutandisCorrect
  2. BCancel the registration automatically without any proceedings
  3. COnly impose a late fee under the annual return provisions
  4. DTreat the goods as exempt supplies

Explanation

Section 35(6), subject to section 17(5)(h), lets the proper officer determine the tax payable on goods or services not accounted for as if supplied by that person, with sections 73, 74 or 74A applying mutatis mutandis. The other options have no basis in that sub-section.

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