Transitional Provisions under GST Part8 –Treatment of ServiceTax, Excise Duty and VAT Output Under Dispute

There could be a situation where there is a dispute between the department and registered taxable person with regard to the amount of Service Tax or Excise Duty or VAT Output Liability. In such a scenario, the question arises how such dispute, appeal or review will be settled under GST?

The above situation is addressed by section 183 of Model GST Law

Treatment of Tax, Duty Payable or Refundable Arising Out of Appeal, Revision or Review Proceedings under CGST and SGST

In such a scenario, every such proceeding pertaining to earlier law whether initiated before or after GST becoming effective will be disposed in accordance with the provisions of earlier law.

Point to be Noted: The amount so payable will be treated as an arrear of tax and will be not allowed as Input Tax Credit Under GST

Point of Distinction between CGST AND SGST

In CGST, if there is any refund will be paid in cash, whereas in SGST it will be be paid in accordance with State VAT Law