Property of CA/Advocate can be attached for Lower GST Tax Payment by Client?

Recently I got one query wherein one of my Professional friend was worried that Property of CA/Advocate can be attached for Lower GST Tax Payment by Client. Now this query was related to one of the amendments proposed via Budget 2021.

This article aims to discuss the new proposed provisions of Section 83 brought in by Budget 2021 which deals with Provisional attachment to protect revenue in certain cases.

Now let’s see what Amendment has been proposed in this section.

Section 83 (1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).

Analysis of the Provisions:

• For safeguarding the interest of revenue, any property, including bank account of:
  • Taxable Person, or
  • any person specified in section 122(1A) can be attached.

Who is the person specified in section 122(1A)?

• • Any person who retains the benefit of the below-mentioned transactions and at whose instance such transaction is conducted:
  • supply of any goods or services or both without the issue of any invoice or issue of an incorrect or false invoice with regard to any such supply
  • issue of invoice or bill without supply of goods or services or both in violation of the GST provisions
  • taking or utilizing input tax credit without actual receipt of goods or services
  • taking or distributing input tax credit in contravention of section 20 or the rules made thereunder

• Scope of Provisions related to Provisional attachment has been expanded.

• Period of Attachment

Now, the CA’s and Advocates were worried, that even if they are doing the job of filing GST Return for the client, their property will be attached in case non-payment of dues by the client.

Please understand that if the professional including, CA or Advocate, is found to be involved in transactions related to Fake billing or claiming Fake ITC, then his property might be attached.

But these provisions will never do you any harm if you are innocent.

However, as a professional who is just filing a return, we need to take appropriate measures for our safety.

Some of them can be:

• Taking Client written approval before filing his return and using his OTP.
• Never register your email ID or number on Client GSTN.
• Raise a flag if you find something suspicious while filing the return and keep a proper mail trail for the same.
• Try not to keep Client DSC in your Office.

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information. In no event shall I shall be liable for any direct, indirect, special, or incidental damage resulting from, arising out of, or in connection with the use of the information