Answer

1. F

   Facts

   For tax periods from FY 2024-25 onwards, demands are raised under the new Sec 74A instead of Sec 73 and 74. Scrutiny under Sec 61 continues as before, but any demand that follows uses Sec 74A.

2. P

   Provisions and law

   • Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, with time limits and penalties set by whether fraud is involved
   • Sec 61, CGST Act 2017Proper officer may scrutinise returns, inform discrepancies and seek an explanation
   • Sec 73, CGST Act 2017Demand for tax not paid or ITC wrongly availed without fraud, for periods up to FY 2023-24
3. A

   Analysis

   Under Sec 74A, the show cause notice for FY 2024-25 can be issued within 42 months from the annual return due date, and the order within 12 months after that. Penalty is lower where there is no fraud. Example: a non-fraud demand of Rs 3 lakh carries penalty of 10 percent of tax or Rs 10,000, whichever is higher; check the exact Sec 74A text. Resolving at scrutiny avoids all of this.

4. C

   Conclusion

   1. 1Identify the financial year of each scrutiny point
   2. 2Note that demands for FY 2024-25 onwards follow Sec 74A
   3. 3Resolve as much as possible at the ASMT-10 stage
   4. 4Pay accepted amounts early to limit penalty

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.