GST
Minimum amount for a show cause notice
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Sec 74A provides that no notice is issued if the tax for a financial year is less than ₹1,000. For older years under Sec 73 and Sec 74, check the rules and instructions in force for that period before relying on a similar limit.
Provisions and law
- Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, fraud and non-fraud cases
- Sec 73, CGST Act 2017Demand for tax short paid without fraud, for periods up to FY 2023-24
Analysis
A notice for tax below ₹1,000 for a year can be challenged on this ground. If the tax is above ₹1,000 but tiny, paying it with interest may simply be cheaper than a long reply. Check the per-year figure, not the total across years.
Conclusion
- Split the notice amount by financial year
- Check if any year is below ₹1,000
- Challenge those years
- Weigh cost of reply against paying small amounts
A Savvy can do this for you
Show cause notice under Sec 73, 74 or 74A and DRC-06 reply
Quote
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.