INTRODUCTION
Under the GST framework, every registered person is required to self-assess tax liability, discharge such liability within prescribed timelines, and furnish valid returns in accordance with the provisions of the Act. However, in practice, situations arise where tax is either not paid, short paid, or input tax credit is wrongly availed or utilised. Such instances may occur due to bona fide errors, misunderstandings of law, or in some cases, deliberate non-compliance.

Tax administration, therefore, frequently encounters cases where tax dues are not discharged correctly, whether inadvertently or intentionally. To address these situations and to ensure protection of Government revenue, comprehensive provisions relating to demand and recovery of tax have been incorporated in the CGST Act, 2017. These provisions empower tax authorities to determine unpaid or short-paid tax, impose penalties where warranted, and recover outstanding dues in a legally structured manner.