Answer

1. F

   Facts

   For periods up to FY 2023-24, demands are under Sec 73 (non-fraud) or Sec 74 (fraud). From FY 2024-25 onwards, Sec 74A covers both.

2. P

   Provisions and law

   • Sec 73(1), CGST Act 2017Show cause notice for tax not paid, short paid or ITC wrongly availed for reasons other than fraud, for periods up to FY 2023-24.
   • Sec 74(1), CGST Act 2017Show cause notice where tax is short paid or ITC wrongly availed by fraud, wilful misstatement or suppression, for periods up to FY 2023-24.
   • Sec 74A, CGST Act 2017For FY 2024-25 onwards, one procedure for demands: notice within 42 months of the annual return due date, order within 12 months of the notice; penalty depends on whether fraud is alleged.
3. A

   Analysis

   The section decides the time limit and penalty. Sec 74 for fraud allows a longer period than Sec 73. If the notice invokes Sec 74, the officer must show fraud, wilful misstatement or suppression; if facts do not support that, argue that only Sec 73 could apply, which may be time-barred. Read the notice carefully for the period and section.

4. C

   Conclusion

   1. 1Identify the financial years in the notice.
   2. 2Note the section invoked for each year.
   3. 3Check whether facts support fraud allegations.
   4. 4Check limitation for each year under the right section.

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