GST
Which demand section applies to which year
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Sec 73 (non-fraud) and Sec 74 (fraud, wilful misstatement or suppression) apply to demands for periods up to FY 2023-24. Sec 74A, inserted by the Finance (No. 2) Act 2024, applies to demands for FY 2024-25 onwards and covers both kinds of cases.
Provisions and law
- Sec 73, CGST Act 2017Demand for tax short paid without fraud, for periods up to FY 2023-24
- 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
Analysis
The section decides time limits and penalty. A notice for FY 2024-25 issued under Sec 73 or 74 is open to challenge, and a notice for FY 2022-23 under Sec 74A is also wrong. Check the section against the period first; it is a common and strong technical point.
Conclusion
- Note the period covered by the notice
- Check the section cited
- Raise a jurisdiction point if the section does not match the period
- Then reply on merits as well
A Savvy can do this for you
Show cause notice under Sec 73, 74 or 74A and DRC-06 reply
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