Answer

1. F

   Facts

   Sec 74A, added by the Finance (No. 2) Act 2024, applies to demands for FY 2024-25 onwards, whether or not fraud is alleged. Sec 73 (non-fraud) and Sec 74 (fraud) apply to periods up to FY 2023-24.

2. P

   Provisions and law

   • Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, with separate penalties for fraud and non-fraud cases
   • Sec 73, CGST Act 2017Demand where tax is short paid or ITC wrongly taken 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
3. A

   Analysis

   If your notice is for FY 2024-25 and cites Sec 73, it is under the wrong section, which is a point to raise. Under 74A, the penalty depends on whether fraud is alleged, so read the notice for that. Time limits and payment benefits differ too.

4. C

   Conclusion

   1. 1Check the period in the notice.
   2. 2Confirm the section matches the period.
   3. 3See whether fraud or suppression is alleged.
   4. 4Plan reply and payment based on the right section.

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