GST Advisory on Initiating Drop Proceeding by Taxpayer- 2023
Initiating Drop Proceeding in GST
Initiating drop proceeding under GST advisory is a process that allows taxpayers to request a reduction or cancellation of a GST liability that has been assessed by the GST authorities. This can be done in cases where the taxpayer believes that the liability was assessed incorrectly or that they have overpaid GST.
The process for initiating a drop proceeding under GST advisory typically begins with the taxpayer filing a request with the GST authorities. This request should include detailed information about the GST liability in question, as well as any supporting documentation that the taxpayer believes will help to support their case.
Once the request has been received, the GST authorities will review the information and may request additional information or clarification from the taxpayer. If the authorities determine that the taxpayer’s request has merit, they will proceed with the drop proceeding and may reduce or cancel the GST liability in question.
It’s important to note that the process of initiating a drop proceeding under GST advisory can be complex and time-consuming, and it’s important that taxpayers work closely with experienced GST advisors to ensure that they are providing the necessary information and documentation to support their case.
In addition, taxpayers should be aware that there are specific timelines and deadlines that must be met in order to initiate a drop proceeding, and failure to meet these deadlines may result in the request being denied.
How Initiating drop proceeding is Useful for GST Holder?
Overall, initiating a drop proceeding under GST advisory can be a useful tool for taxpayers who believe that they have overpaid GST or that their GST liability has been assessed incorrectly. By working closely with experienced GST advisors and understanding the process and timelines involved, taxpayers can improve their chances of success in having their GST liability reduced or cancelled.
Goods and Services Tax (GST) is a comprehensive indirect tax system that is implemented in India to bring transparency and simplicity in the tax system. GST is levied on the supply of goods and services and is collected by the central and state governments. However, in certain cases, taxpayers may end up paying more GST than they should or may have been assessed incorrectly. In such scenarios, taxpayers can initiate a Drop Proceeding (DP) under GST advisory to request a reduction or cancellation of their GST liability.
The process of initiating a DP under GST advisory can be complex and time-consuming. Therefore, it is essential for taxpayers to understand the process and timelines involved and to work closely with experienced GST advisors to ensure that their request is filed correctly. In this blog post, we will discuss the GST automated DP advisory process in detail and how it can help taxpayers reduce or cancel their GST liability.
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Advisory on “Initiating Drop Proceeding” by taxpayers 2023.
This advisory was release on 12/01/2023 and in this recently inserted a new functionality of Automated Drop Proceedings of GSTINs suspended due to non-filing of returns has been implemented on the GST Portal. This functionality is for the taxpayers who have filed their pending 6 monthly or 2 Quarterly returns.
Such taxpayers are advised to revoke the suspension once the due returns have been filed by clicking on “INITIATE DROP PROCEEDING” for which navigation is as follows:
What is GST Automated initiating Drop Proceeding Advisory?
GST automated initiating drop proceeding advisory is a process that allows taxpayers to request a reduction or cancellation of their GST liability that has been assessed by the GST authorities. The process is automated, which means that the request is filed and processed through the GST portal. Taxpayers can file the request online and track the status of their DP through the portal.
When to Initiate a GST Automated Drop Proceeding Advisory?
Taxpayers can initiate a GST automated DP advisory in the following scenarios:
- Overpayment of GST: Taxpayers may end up paying more GST than they should due to various reasons such as input tax credit (ITC) not being allowed, incorrect GST rate being applied, or incorrect GST return being filed. In such cases, taxpayers can initiate a DP to request a refund of the excess GST paid.
- Incorrect GST liability assessment: Taxpayers may have been assessed with a higher GST liability than they should have due to various reasons such as incorrect GST return being filed, incorrect GST rate being applied, or incorrect GST being charged. In such cases, taxpayers can initiate a DP to request a reduction in their GST liability.
- GST liability due to mistake of fact: Taxpayers may have incurred GST liability due to a mistake of fact, such as applying the wrong GST rate or filing the wrong GST return. In such cases, taxpayers can initiate a DP to request a cancellation of their GST liability.
How to Initiate a GST Automated Drop Proceeding Advisory?
The process of initiating a GST automated DP advisory is as follows:
- Login to the GST portal: Taxpayers need to login to the GST portal using their GSTIN and password.
- Navigate to the DP request form: Taxpayers need to navigate to the DP request form, which is available under the “Services” menu.
- Fill in the DP request form: Taxpayers need to fill in the DP request form with the following details:
- GSTIN of the taxpayer
- Financial year for which the DP is being requested
- Tax period for which the DP is being requested
- Reason for the DP request (overpayment of GST, incorrect GST liability assessment, GST liability due to mistake of fact)
- Details of the GST liability for which the DP is being requested (invoice number, GST amount, etc.)
- Supporting documents (if any)
- Submit the DP request form: Taxpayers need to submit the DP request form, and a reference number will be generated for the DP request. Taxpayers can use this reference number to track the status of their DP request.
- Track the status of the DP request: Taxpayers can track the status of their DP request by logging in to the GST portal and navigating
Goods and Services Tax (GST) is a comprehensive indirect tax system that is implemented in India to bring transparency and simplicity in the tax system. GST is levied on the supply of goods and services and is collected by the central and state governments. However, in certain cases, taxpayers may end up paying more GST than they should or may have been assessed incorrectly. In such scenarios, taxpayers can initiate a Drop Proceeding (DP) under GST advisory to request a reduction or cancellation of their GST liability.
The process of initiating a DP under GST advisory can be complex and time-consuming. Therefore, it is essential for taxpayers to understand the process and timelines involved and to work closely with experienced GST advisors to ensure that their request is filed correctly. In this blog post, we will discuss the process of initiating a DP under GST advisory in detail and how it can help taxpayers reduce or cancel their GST liability.
When to Initiate a GST initiating Drop Proceeding Advisory?
Taxpayers can initiate a GST DP advisory in the following scenarios:
- Overpayment of GST: Taxpayers may end up paying more GST than they should due to various reasons such as input tax credit (ITC) not being allowed, incorrect GST rate being applied, or incorrect GST return being filed. In such cases, taxpayers can initiate a DP to request a refund of the excess GST paid.
- Incorrect GST liability assessment: Taxpayers may have been assessed with a higher GST liability than they should have due to various reasons such as incorrect GST return being filed, incorrect GST rate being applied, or incorrect GST being charged. In such cases, taxpayers can initiate a DP to request a reduction in their GST liability.
- GST liability due to mistake of fact: Taxpayers may have incurred GST liability due to a mistake of fact, such as applying the wrong GST rate or filing the wrong GST return. In such cases, taxpayers can initiate a DP to request a cancellation of their GST liability.
How to Initiate a GST Initiating Drop Proceeding Advisory?
The process of initiating drop proceeding of GST advisory is as follows:
- Identify the GST liability: Taxpayers need to identify the GST liability for which they want to initiate a DP. This includes the GST amount, the invoice number, and the financial year and tax period for which the DP is being requested.
- Gather supporting documents: Taxpayers need to gather supporting documents that will help to support their case for a DP. These may include invoices, GST returns, and other relevant documentation.
- Contact a GST advisor: Taxpayers should contact a GST advisor who can guide them through the DP process. A GST advisor can help taxpayers to understand the process, timelines, and requirements for a DP and can also assist with the preparation and filing of the DP request.
- File the DP request: Taxpayers need to file the DP request with the GST authorities. This can be done by submitting the DP request form and supporting documents to the GST authorities either in person or by post.
- Follow-up with the GST authorities: Taxpayers need to follow-up with the GST authorities to ensure that their DP request has been received and is being processed. They can track the status of their DP request by visiting the GST website or by contacting the GST authorities.
- Respond to the GST authorities: Taxpayers may be required to respond to queries or provide additional information to the GST authorities as part of the DP process. It’s important that taxpayers respond to these queries in a timely manner to avoid delays in the processing of their DP request.
