UP GST Department Clarifies DRC-07A Procedures for Recovery of Pre-GST Dues
By: Admin
April 17, 2024
Categories: Notification And Circular
4 Min Read
The Uttar Pradesh GST Department released Circular No. Collection/2024-25/2425001/65 dated April 16, 2024, updating procedures on DRC-07A for recovering pending tax dues from businesses active during the pre-GST era under laws like VAT. It clarifies processes for amending/deleting recovery certificates once dues are recovered under the CGST/UPGST Act using DRC-07A. The circular addresses the operational differences between departmental and district administration-led recoveries, detailing specific steps for both to ensure uniformity and compliance. Departmental entries for recoveries must use the R.C marking on their portal, while district administrations follow a separate procedure without needing to return recovery certificates. Full recovery compliance issues Form ST-45. Challenges in adherence should be reported to the issuing authority.
Earlier, vide Headquarters letter No. GST Section/2023-24/736/State Tax, dated January 09, 2024, such firms which are doing active business during the GST period under the previous Act (VAT, Entry Tax, Entertainment Tax etc.) For the cases of recovery of pending dues related to CGST/UPGST Act, by issuing format DRC-07A under Section 142A(1) of the CGST/UPGST Act, instructions were given to recover the said dues under the CGST/UPGST Act.
In case the outstanding amount is recovered under CGST/UPGST Act by issuing format DRC-07A as above, the recovery certificate issued under the previous law is required to be amended/deleted. At present, two different systems are working in the State Tax Department to recover the dues created under the previous law, by the departmental and district administration. In this regard, in order to remove the ambiguity prevailing in the implementation among the field units and to bring uniformity in the working system, the following is clarified –
Recovery by departmental and district administration for recovery of dues created under the previous law. Different procedures will be followed for two different systems of execution.
In those districts where the recovery of past dues is done by the departmental officers under the previous law, in those cases, the recovery certificate in respect of which format DRC-07A has been issued, should be entered in the departmental portal under R.C marking will be done.
While making such entry under the heading R.C marking, the radio button of R.C removal available on the portal will be selected. Open after selecting the said button. The number and date of DRC-07A will be entered in the drop down.
On making the entry as above, the amount covered by the concerned recovery certificate will be reduced by the amount of eligible recovery outstanding under the relevant previous law.
In those districts where the recovery of past dues is done by the district administration under the previous law, a separate procedure will be followed in those districts.
No action will be taken regarding the return of outstanding recovery certificates in the districts where the district administration has recovered.
In such cases related to the recovery of dues of the previous law, where any recovery has been made from the cash ledger or credit ledger of the taxpayer at the departmental level, the RC will be modified by reducing the amount equivalent to the recovery amount and the RC will be modified accordingly. Will be made available to the administration for recovery.
For both types of recovery formats, Form ST-45 will be issued only in the case where the entire outstanding amount as per the previous method has been recovered.
Strict compliance with the above instructions should be ensured.
Any difficulties arising in complying with the above instructions may be brought to the notice of the undersigned.
The Circular can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/DRC-07A.pdf