Tax Consultant

Section 58 of CGST Act, 2017 – Liability in Certain Cases Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective and Scope of Section 58 Section 58 deals with tax liability in special situations where goods belonging to a taxable person are kept or stored at the premises of another person. This provision ensures that: Tax liability does not escape due to ownership–custody mismatch Government revenue is protected in storage-related arrangements 2. Statutory Provision – Section 58 Section 58: Where any goods belonging to a taxable person are kept or stored at any place belonging to another person, the taxable person and the person at whose place such goods are kept or stored shall be jointly and severally liable to pay the tax payable on such goods, if such goods are supplied without payment of tax. 3. Meaning of Joint and Several Liability Under joint and several liability: Both persons are treate...

Section 57 of CGST Act, 2017 – Consumer Welfare Fund Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Purpose and Background of Section 57 Section 57 provides for the establishment of the Consumer Welfare Fund (CWF) under the CGST Act. This Fund is a continuation of the concept of consumer protection that existed under earlier indirect tax laws, now integrated into GST. 2. Statutory Provision – Section 57 Section 57: The Government shall constitute a Fund, to be called the Consumer Welfare Fund , and there shall be credited thereto, in such manner as may be prescribed, such amounts as may be specified by the Government. 3. Nature of Consumer Welfare Fund The Consumer Welfare Fund is: A statutory fund Not part of general Government revenue Meant exclusively for consumer welfare activities Amounts credited to the Fund are earmarked and cannot be used for other purposes. 4. Sources of Amount Credite...

Section 56 of CGST Act, 2017 – Interest on Delayed Refunds Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Objective of Section 56 Section 56 provides for payment of interest to the taxpayer where refund sanctioned under GST is not paid within the prescribed time . This provision: Protects taxpayer’s liquidity Ensures accountability of tax administration Acts as compensation for delayed refunds 2. Statutory Provision – Section 56 Section 56: If any tax ordered to be refunded under section 54 is not refunded within sixty days from the date of receipt of application, interest at such rate, not exceeding 6% , as may be notified, shall be payable in respect of such refund from the date immediately after the expiry of sixty days till the date of refund of such tax. Proviso: Where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Court, which has a...

Section 54 of CGST Act, 2017 – Refund of Tax Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 54 Section 54 provides the statutory right to claim refund of tax, interest or any other amount paid under GST. Refund is a critical aspect of GST because: GST is a destination-based tax Exports are zero-rated Input Tax Credit accumulation must be neutralised This section is the backbone of: Export refunds Inverted duty structure refunds Excess payment refunds 2. Statutory Provision – Section 54(1) Any person claiming refund of: Tax Interest Any other amount paid may make an application for refund before the expiry of two years from the relevant date , in such form and manner as may be prescribed. 3. Meaning of Relevant Date The term “relevant date” varies depending on the nature of refund. Examples: Exports – date of shipping bill or paymen...

Section 55 of CGST Act, 2017 – Refunds to Certain Persons Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 55 Section 55 provides a special refund mechanism for certain specified persons who enjoy privileges and immunities under international law. This provision ensures that: GST does not become a cost for diplomatic and international bodies India honours its international treaty obligations 2. Statutory Provision – Section 55 Section 55: The Government may, on the recommendations of the Council, by notification, specify any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, consulate or embassy of foreign countries, or any other person or class of persons, and provide for refund of the tax paid on the inward supplies of goods or services or both recei...

Section 53 of CGST Act, 2017 – Transfer of Amount to Consumer Welfare Fund Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Objective of Section 53 Section 53 deals with the transfer of certain amounts to the Consumer Welfare Fund (CWF) . This provision is closely connected with the doctrine of unjust enrichment and refund mechanism under GST. 2. Statutory Provision – Section 53 Section 53: Any amount payable to the Consumer Welfare Fund under any of the provisions of this Act or the rules made thereunder shall be credited to the Fund in such manner as may be prescribed. 3. What is Consumer Welfare Fund (CWF)? The Consumer Welfare Fund is a statutory fund created to: Promote consumer welfare Protect consumer interests Utilise amounts not refundable to taxpayers Amounts credited to CWF are not retained as tax revenue but are earmarked for consumer-related purposes. 4. When is Amount Tra...

Section 52 of CGST Act, 2017 – Tax Collection at Source (TCS) Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Objective of Section 52 Section 52 provides for Tax Collection at Source (TCS) under GST, applicable exclusively to Electronic Commerce Operators (ECOs) . The objective of GST-TCS is to: Track supplies made through e-commerce platforms Ensure tax compliance by online sellers Create a digital audit trail of transactions 2. Statutory Provision – Section 52(1) An electronic commerce operator, not being an agent, shall collect tax at source at such rate not exceeding 1% , as may be notified, of the net value of taxable supplies made through it by other suppliers, where the consideration is collected by the operator. 3. Who is an Electronic Commerce Operator (ECO)? An Electronic Commerce Operator is a person who: Owns, operates or manages a digital platform Facilitates supply of g...

Section 51 of CGST Act, 2017 – Tax Deduction at Source (TDS) Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Objective of Section 51 Section 51 provides for Tax Deduction at Source (TDS) under GST in specified cases. The objective of GST-TDS is to: Ensure tax compliance by suppliers Create a trail of transactions Prevent tax leakage in Government contracts 2. Statutory Provision – Section 51(1) Notwithstanding anything contained in this Act, the Government may mandate certain persons to deduct tax at source at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of supply under a contract exceeds the prescribed limit. 3. Persons Required to Deduct TDS As notified, TDS under GST is applicable to: Departments or establishments of Central / State Government Local authorities Governmental agencies Such other pe...

Section 50 of CGST Act, 2017 – Interest on Delayed Payment of Tax Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 50 Section 50 provides for levy of interest where a registered person fails to pay GST within the prescribed time. Interest under GST is: Compensatory in nature Automatic and mandatory Independent of penalty proceedings This section is frequently invoked during scrutiny, audit and demand proceedings. 2. Statutory Provision – Section 50 Section 50(1): Every person who is liable to pay tax but fails to pay the tax or any part thereof to the Government within the period prescribed shall, for the period for which the tax or any part thereof remains unpaid, pay interest at such rate, not exceeding 18% , as may be notified. Proviso to Section 50(1): Interest shall be payable on that portion of tax which is paid by debiting the electronic cash ledger, except where s...

Section 49 of CGST Act, 2017 – Payment of Tax, Interest, Penalty and Other Amounts Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 49 Section 49 lays down the mechanism for payment and utilisation of GST liabilities. It governs: Electronic cash ledger Electronic credit ledger Order and manner of utilisation of ITC Adjustment of tax, interest, penalty and other dues This section is the financial backbone of the GST system. 2. Electronic Ledgers under GST – Section 49(1) to 49(4) GST law provides for the following electronic ledgers: 2.1 Electronic Cash Ledger – Section 49(1) All deposits made by a person towards: Tax Interest Penalty Fee Any other amount are credited to the Electronic Cash Ledger . This ledger is maintained on the GST portal. 2.2 Electronic Credit Ledger – Section 49(2) Input Tax Credit (ITC) availed under GST is credite...

Section 48 of CGST Act, 2017 – Goods and Services Tax Practitioners Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 48 Section 48 provides the statutory framework for Goods and Services Tax Practitioners (GSTP) . It allows registered persons to authorise qualified professionals to undertake GST compliance on their behalf. This section recognises GST as a compliance-driven tax system requiring professional assistance. 2. Statutory Provision – Section 48 Section 48(1): A registered person may authorise an approved Goods and Services Tax Practitioner to furnish returns, statements or other particulars as may be prescribed on his behalf. Section 48(2): The responsibility for correctness of any particulars furnished by the GST Practitioner shall remain with the registered person. 3. Who is a GST Practitioner? A GST Practitioner is a person: Enrolled under GST law Approved by t...

Section 47 of CGST Act, 2017 – Levy of Late Fee Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 47 Section 47 provides for the levy of late fee for failure to furnish GST returns within the prescribed time. Late fee is a statutory consequence , distinct from interest or penalty, and is levied automatically by the GST system. 2. Statutory Provision – Section 47 Section 47(1): Any registered person who fails to furnish a return under section 39, section 44 or section 45 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues, subject to a maximum of five thousand rupees . Section 47(2): Any registered person who fails to furnish the annual return under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues, subject to a maximum amount of twenty-fi...

Section 46 of CGST Act, 2017 – Notice to Return Defaulters Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 46 Section 46 empowers the proper officer to issue a notice to a registered person who fails to furnish a return under GST. This section acts as: A statutory reminder A compliance enforcement tool A pre-condition for assessment under Section 62 2. Statutory Provision – Section 46 Section 46: Where a registered person fails to furnish a return under section 39 or section 44 or section 45, a notice shall be issued requiring him to furnish such return within fifteen days in such form and manner as may be prescribed. 3. Returns Covered Under Section 46 Notice under Section 46 can be issued for default in filing: Return under Section 39 (monthly / quarterly return) Annual return under Section 44 Final return under Section 45 Thus, this section covers almost ...

Section 45 of CGST Act, 2017 – Final Return Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 45 Section 45 provides for filing of a final return by a registered person whose GST registration has been cancelled or surrendered . The purpose of final return is to: Bring closure to GST compliance Declare final tax liability Enable recovery of dues, if any 2. Statutory Provision – Section 45 Section 45: Every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or the date of order of cancellation, whichever is later, in such form and manner as may be prescribed. 3. Who Is Required to File Final Return? Final return is required to be filed by: Regular taxpayers whose registration is cancelled Taxpayers whose registra...

Section 44 of CGST Act, 2017 – Annual Return Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 44 Section 44 provides for the filing of annual return under GST . It acts as a consolidated summary of all returns filed during the financial year. Annual return is a critical compliance tool used by: Tax authorities for audit and scrutiny Taxpayers for self-reconciliation 2. Statutory Provision – Section 44(1) Every registered person, other than: Input Service Distributor Casual taxable person Non-resident taxable person shall furnish an annual return for every financial year, on or before such date as may be prescribed. 3. Forms Prescribed for Annual Return Based on category of taxpayer: GSTR-9 – Regular registered persons GSTR-9A – Composition taxpayers GSTR-9B – E-commerce operators (TCS) These forms consolidate data from: GSTR-1 GSTR-3B...

Section 43 of CGST Act, 2017 – Matching, Reversal and Reclaim of Reduction in Output Tax Liability Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Introduction to Section 43 Section 43 was introduced to provide a system-based mechanism for matching reduction in output tax liability claimed by a supplier, mainly through: Credit notes Downward revision of taxable value or tax This section was intended to work alongside Section 42. 2. Legislative Intent of Section 43 The objective of Section 43 was to: Ensure that reduction in output tax is genuine Prevent misuse of credit notes Link supplier’s reduction with recipient’s ITC reversal Thus, any reduction in tax liability by supplier was to be matched with corresponding action by recipient. 3. Original Matching Mechanism (Conceptual) As per the original design: Supplier declares credit note details System matches it with recipient’s ITC ...

Section 42 of CGST Act, 2017 – Matching, Reversal and Re-claim of Input Tax Credit Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Introduction to Section 42 Section 42 was originally introduced to provide a system-driven mechanism for matching Input Tax Credit (ITC) claimed by recipients with tax paid by suppliers. However, due to practical difficulties, the matching mechanism envisaged under Sections 42 and 43 has not been implemented. 2. Legislative Intent of Section 42 The intent behind Section 42 was to: Ensure one-to-one matching of ITC Prevent wrongful availment of credit Create an automated compliance ecosystem This was to be achieved through system-based comparison of supplier and recipient returns. 3. Statutory Framework (Original Scheme) As per the original provisions: ITC claimed by recipient would be matched Mismatch would be communicated to both parties Unresolved mismatch wo...

Section 41 of CGST Act, 2017 – Claim of Input Tax Credit and Provisional Acceptance Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Background of Section 41 Section 41 governs the claim and utilisation of Input Tax Credit (ITC) by a registered person. This section has undergone major amendment to align GST with a self-assessment based ITC system . 2. Statutory Provision – Section 41 (As Amended) Section 41(1): Every registered person shall be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger. Section 41(2): If the input tax credit availed by a registered person is not paid to the Government by the supplier, such credit shall be reversed by the recipient along with applicable interest. The recipient shall be entitled to re-avail the credit on payment of tax by the supplier. 3. Key Change After Amendment Earlie...

Section 40 of CGST Act, 2017 – First Return Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 40 Section 40 deals with the concept of first return under GST. It applies to persons who are: Newly registered under GST, or Granted registration with retrospective effect This section ensures that tax liability for the period prior to registration is properly disclosed and paid. 2. Statutory Provision – Section 40 Section 40: Every registered person who has made outward supplies during the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the details of such supplies in the first return furnished by him after grant of registration. 3. When is Section 40 Applicable? Section 40 becomes applicable when: A person crosses the threshold limit under Section 22, but Registration is granted at a later da...

  GST Appeal Filing Process – Step-by-Step Guide with Grounds & Stay Petition Format Introduction Under GST law, whenever a taxpayer receives an adverse order or demand , the right to file an appeal under Section 107 of the CGST Act, 2017 is a statutory remedy. However, many taxpayers either miss the time limit or file appeals incorrectly, leading to rejection. This article explains: When GST appeal can be filed Time limits and pre-deposit requirements Step-by-step online filing process Grounds of appeal Stay petition format against GST demand What is GST Appeal? GST appeal is a legal remedy available to a taxpayer against: Demand orders (DRC-07) Penalty orders Cancellation of registration Rejection of refund Any adjudication order passed by GST authorities 📌 Appeals are governed by Section 107 of CGST Act, 2017 . Time Limit for Filing GST Appeal As per Section 107(1) : Appeal must be filed within 3 months from the date of communication of o...