GST
Notice uses Section 74 without showing fraud
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Facts
Sec 74 needs fraud, wilful misstatement or suppression of facts with intent to evade. Sec 75(2) says if these are not proven, the demand is recomputed as if under Sec 73. Courts have set aside Sec 74 notices that state no facts for fraud.
Provisions and law
- Sec 74, CGST Act 2017Demand where fraud, wilful misstatement or suppression is alleged, for periods up to FY 2023-24
- Sec 75(2), CGST Act 2017Where fraud is not established, tax is determined as if under Sec 73
Analysis
Ask in the reply for the evidence of intent. Show that the figures came from your own returns, which is not suppression. If the period is beyond Sec 73 limits, recomputation under Sec 75(2) may make it time barred. This is a common and often winning argument.
Conclusion
- List what the notice says about fraud.
- Show that the data was disclosed in returns or books.
- Argue that only Sec 73 applies and check its time limit.
- Ask for relied-upon documents.
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