Section 17A: Increase in amount specified for compulsory

17A. Increase in amount specified for compulsory registration (1) Where the amount specified in the Sixth Schedule is increased, any registered person who is no longer required to remain registered under the Act shall, by irrevocable notice in writing to the Director-General, within 30 days of the coming into operation of the increase, elect to cease to be registered. (2) Where a person makes an election under subsection (1), he shall cease to be a registered person as from the beginning of the taxable period immediately following the date of his notification. (3) Where a person gives notice under subsection (1), he shall – (a) at the same time, submit any overdue return; (b) s ubmit, by the due date, the return for each taxable period up to and including the taxable period ending on the date on which he would cease to be registered; (c) p ay any tax due together with any penalty under sections 26, 26A and 27 and any interest under section 27A; (d) c ease to hold himself out to be a registered person as from the date he would cease to be registered; and (e) return to the Director-General his certificate of registration and all its copies. 302 Acts 2016 (4) The Director-General shall, on receipt of a notice under subsection (1) – (a) deregister the person; and (b) w here necessary, enforce compliance by the person of the requirements of subsection (3). (5) Any person who does not give notice by the time limit referred to in subsection (1) shall continue to be a registered person under section 16. (6) Where a person ceases to be a registered person under this section and his return for the last taxable period shows an excess of input tax over output tax, the excess of input tax over output tax shall not be refundable. (c) in section 18 – (i) in subsection (2), by repealing paragraph (b) and replacing it by the following paragraph – (b) submit a return and pay the tax specified therein; (ii) by adding the following new subsection – (3) Where the Director-General cancels the registration of a person and the return for the last taxable period of that person shows an excess of input tax over output tax, the excess of input tax over output tax shall not be refundable. (d) in section 21, by adding the following new subsection – (11) (a) Where, in respect of a taxable period, a registered person carries forward an excess amount of input tax over output tax and it is found that the excess has been overclaimed, the person shall be liable to pay to the DirectorGeneral a penalty representing 20 per cent of the amount overclaimed and such penalty shall be deemed to be output tax and shall be included by that person in his return in respect of the taxable period immediately following that taxable period. (b) The penalty under paragraph (a) shall not exceed 100,000 rupees. Acts 2016 303 (c) Paragraph (a) shall not apply where a penalty has been claimed under section 24(9) in respect of the overclaimed excess. (e) in section 27, in subsection (1), by deleting the figure “5” and replacing it by the figure “10”; (f) by repealing Part VIA; (g) in section 27E, in subsection (2), by deleting the words “Sub-part B” and replacing them by the words “Sub-part D”; (h) in section 28A, in subsection (2), by adding the words “or non-submission of a statement under section 23 or a return by a taxable person”; (i) by inserting, after section 37A, the following new section –