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CA Final · Indirect Tax Laws · Assessment and Audit

Nirmal Traders was a provisionally assessed person. The proper officer issued the final assessment order in FORM GST ASMT-07 on 10 June, and Nirmal paid the amount specified in it. Nirmal filed an application in FORM GST ASMT-08 for release of its bank guarantee on 14 June (Friday). Which statement is correct under Rule 98?

After the final order in ASMT-07 and payment of the amount, the applicant files FORM GST ASMT-08. The proper officer, once satisfied that payment is made, releases the security and issues FORM GST ASMT-09 within seven working days from receipt of the application.

  1. AThe officer must release the security and issue an order in FORM GST ASMT-09 within seven working days from receipt of the application, after ensuring the amount in ASMT-07 is paidCorrect
  2. BThe officer must release the security within fifteen days of the final assessment order, irrespective of the application
  3. CThe application should have been filed in FORM GST ASMT-06, and the officer may release the security at his discretion
  4. DThe security is released automatically on issue of FORM GST ASMT-07 without any application

Explanation

Rule 98(6) allows an application in ASMT-08 after the order under sub-rule (5). Rule 98(7) requires the officer to release security after ensuring payment of the amount specified and to issue ASMT-09 within seven working days of receipt of the application. ASMT-06 is a notice calling for information, so the other options misstate the form or timing.

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