GST
Time limits under Section 74 for fraud cases
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Facts
Under Sec 74(10), the order must be passed within 5 years from the due date of the annual return for the year. The notice must be issued at least 6 months before that.
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, CGST Act 2017General rules for demand: hearing, adjournments, order within the notice, time limits
Analysis
The longer time applies only if fraud, wilful misstatement or suppression is genuinely present. If the notice invokes Sec 74 just to get more time, argue that the facts support only Sec 73, under which it may be time barred. Under Sec 75(2), if fraud is not proven, the demand is recomputed under Sec 73 limits.
Conclusion
- Find the GSTR-9 due date for the year.
- Add 5 years for the order deadline.
- Check that the notice was issued 6 months before.
- Test whether the facts show fraud at all.
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