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CS Executive · Tax Laws and Practice · Procedural Compliance under GST

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. The determination follows the section 73 or 74 or 74A procedure, as the case may be, applied with necessary changes.

  1. ADetermine the tax payable on those goods as if they had been supplied by the person, applying the section 73 or 74 (or 74A) procedure as applicableCorrect
  2. BCancel the registration without any notice
  3. CImpose no consequence, because the failure is only procedural
  4. DRequire the person to pay tax only on the stock lying at the year-end

Explanation

Section 35(6) allows the proper officer to determine tax on unaccounted goods or services as if they had been supplied by the person, with section 73 or 74 or 74A applying mutatis mutandis. It is not a mere procedural lapse, so ignoring it is wrong.

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