GST NOTICE & REPLY

GST department issues notice in case of input tax evasion, erroneous refund and erroneously filed GST returns.

Section 73 of GST act – No Fraud or Misrepresentation

When there is no reason of fraud or wilful misstatement or suppression of facts, demand notice is issued under Section 73 of the GST act.

Section 73 of the CGST act, deals with the cases where any taxes has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax.

Time limit for issue of notice and adjudication under Section 73

If there is any non-payment, short payment, or where input credit has been wrongly availed or utilized for any reason other than fraud or willful misstatement or suppression of facts, than the adjudication of the case should be done within 3 years from the date of filing of annual GST return for the relevant financial year.

Section 74 of GST act – Fraud or Misrepresentation

When there is reason of fraud or wilful misstatement or suppression of facts, GST demand notice is issued under Section 74 of the GST act.

Section 74 of the CGST act, deals with the cases where any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised by reason of fraud or any wilful mis-statement or suppression of facts to evade tax.

Time limit for issue of notice and adjudication under section 74

If there is any non-payment, short payment, or where input credit has been wrongly availed or utilized with the reason of fraud or willful mis-statement or suppression of facts, than the adjudication of the case should be done within 5 years from the date of filing of annual return for the relevant financial year.

If the assessee received an erroneous refund, the case must be adjudicated within 5 years from the date on which such refund was credited to the assessee’s account.

The officer should issue notice for recovery of tax at least 6 months before the deadline for adjudication of case or issue of order.

The officer should issue order of adjudication within 5 years from the due date for furnishing of annual return for the financial year for the relevant period of dispute.