Answer

1. F

   Facts

   Fraud, wilful misstatement or suppression must be shown with facts. CBIC has instructed officers not to invoke the fraud provisions mechanically. A notice that only repeats the words of the section can be challenged.

2. P

   Provisions and law

   • Sec 74, CGST Act 2017Demand where fraud, wilful misstatement or suppression is alleged, for periods up to FY 2023-24
   • 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
3. A

   Analysis

   If the issue is a reporting or interpretation difference, such as a rate dispute, argue in DRC-06 that there is no evidence of intent and the case is at most under Sec 73 or the non-fraud limb of Sec 74A. This lowers penalty and may bring limitation into play. Ask the officer to state the evidence relied on.

4. C

   Conclusion

   1. 1List every fact the notice gives for fraud
   2. 2Show that the facts were disclosed in returns or records
   3. 3Argue the case falls under Sec 73 or non-fraud Sec 74A
   4. 4Ask for the evidence relied upon and a hearing

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