GST
One notice covering many years of a supplier
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Facts
Time limits under Sec 73, 74 and 74A are counted for each financial year. Each year's demand must be within its own limitation period.
Provisions and law
- Sec 73(10), CGST Act 2017The order under Sec 73 must be issued within three years from the due date of the annual return for the year; the notice at least three months before that.
- Sec 74(1), CGST Act 2017Show cause notice where tax is short paid or ITC wrongly availed by fraud, wilful misstatement or suppression, for periods up to FY 2023-24.
- Sec 74A, CGST Act 2017For FY 2024-25 onwards, one procedure for demands: notice within 42 months of the annual return due date, order within 12 months of the notice; penalty depends on whether fraud is alleged.
Analysis
Bunching of years in one notice has been questioned by some courts, and the position depends on facts. In your reply, examine each year separately for limitation and merits. Older years may be barred even if newer years are not. Present evidence year-wise.
Conclusion
- Split the demand by financial year.
- Check limitation for each year.
- Present evidence year by year.
- Raise bunching as a legal point with advice.
A Savvy can do this for you
Reply to fake ITC notice when a supplier is found non-existent, Sec 16(2)(c)
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