GST
No notice for amounts below ₹1,000
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Facts
Sec 74A says no notice is issued where the tax involved is less than ₹1,000 for a financial year.
Provisions and law
- Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, with separate penalties for fraud and non-fraud cases
Analysis
For FY 2024-25 onwards, a notice below ₹1,000 tax should not be issued. Point this out in the reply. For earlier years, an older practice or circular may have applied, so check.
Conclusion
- Check the period and tax amount.
- Point out the Sec 74A limit in the reply.
- Pay if you agree, since it is small.
- Keep the reply on record.
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