Limitation period for issuance of Notice and order Under section 73 , 74 & 74A of CGST/SGST Act 2017.
For FY 2017-18 to 2023-24
| Year | Due Date
Annual Return |
US 73 Notice | Us 73 Order | US 74 Notice | Us 74 Order |
| 2017-18 | 07-02-20 | 07-11-2022 Extended date 30-09-2023 | 07-02-2023 Extend dated 31-12-2023 | 07-08-24 | 07-02-25 |
| 2018-19 | 31-12-20 | 30-09-22 | 31-12-23 | 30-06-25 | 31-12-25 |
| 2019-20 | 31-03-21 | 31-12-23 | 31-03-24 | 30-09-25 | 31-03-26 |
| 2020-21 | 28-02-22 | 28-11-24 | 28-02-25 | 28-08-26 | 28-02-27 |
| 2021-22 | 31-12-22 | 30-09-24 | 31-12-25 | 30-06-26 | 31-12-27 |
| 2022-23 | 31-12-23 | 30-09-25 | 31-12-26 | 30-06-27 | 31-12-28 |
| 2023-24 | 31-12-24 | 30-09-26 | 31-12-27 | 30-06-28 | 31-12-29 |
| Other than Tax evasion Cases Section 73 (upto FY 2023-24) | ||||
| Year | Due Date
Annual return |
Time period for SCN | Time period for order | Extended Time period for order |
| Upto 2023-24 | 31.12.2024 | 33 months form due date of Annual return/Refund Section 73(2) | 36 months form due date of Annual return/Refund Section 73(10) | As per order issued under section 168A/172 etc |
Time period for payment of tax, interest, penalty
| Short payment of tax /ITC/ Refund- Other than fraud Cases | ||
| Before SCN – Section 73(5) | Within 30 days of issuance of SCN – Sec 73(8) | After 30days of SCN – Sec 73(9) |
| Only Tax & Interest | Only Tax & Interest | Tax, Interest & Penalty equal to 10% of tax or 10000 whichever is Higher |
Time period for Payment of self assessee tax: within 30days of due date otherwise penalty equal to 10% of tax or Rs. 10,000 whichever is Higher – Section 73(11).
| Time limit for SCN/ order in Tax evasion Cases Section 74 (upto FY 2023-24) | ||||
| Year | Due Date
Annual return |
Time period for SCN | Time period for order | Extended Time period for order |
| Upto 2023-24 | 31.12.2024 | (5years -6 months) 54 months form due date of Annual return/Refund Section 74(2) | (5Years) / 60 months form due date of Annual return/Refund Section 74(10) | As per order issued under section 168A/172 etc. |
Time period for payment of tax, interest, penalty: –
| Section 74 To evade tax cases by way fraud willful-misstatement or suppression of facts | |||
| Before SCN – Sec 74(5) | Within 30 days of issuance of SCN – Sec 74(8) | Before 30 days of communication order – Sec 74(11) | After 30 days of communication order – Sec 74(10) read with Sec 74(1) |
| Tax, Interest & penalty equal to 15% of tax | Tax, Interest & penalty equal to 25% of tax | Tax, Interest & penalty equal to 50% of tax | Tax, Interest & penalty equal to 100% of tax |
From FY 2024-25 Onwards
Section 74A
| Year | Due Date
Annual return |
Time period for SCN | Time period for order | Extended Time period for order |
| 2024-25 | 31.12.2025 | 30.06.2029 | Within 12 months from date of issuance of SCN | Within 18 months from date of issuance of SCN with approval of senior officer such as joint commissioner |
| To evade tax cases by way fraud willful-misstatement or suppression of facts | |||
| Before SCN | Within 60 days of issuance of SCN | Before 60 days of communication order | After 60 days of communication order |
| Tax, Interest & penalty equal to 15% of tax | Tax, Interest & penalty equal to 25% of tax | Tax, Interest & penalty equal to 50% of tax | Tax, Interest & penalty equal to 100% of tax |
Time period for Payment of self assessee tax : within 30days of due date otherwise penalty equal to 10% of tax or Rs. 10,000 whichever is Higher : under section 74A(11) & 5(i)
EXTRACT OF SECTION 73,74,74A OF CGST/SGST ACT
Section – 73, Central Goods And Services Tax Act, 2017
Determination of tax { pertaining to the period upto Financial year 2023-24}, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts .
73.(1) Where it appears to the proper officer that any tax 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, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.
(2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.
(12) The provisions of this section shall be applicable for determination of tax pertaining to the period upto Financial Year 2023-24.
Section – 74, Central Goods And Services Tax Act, 2017
Determination of tax [, pertaining to the period upto financial year 2023-24,] not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful-misstatement or suppression of facts.
- (1) Where it appears to the proper officer that 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-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50and a penalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be service of notice under sub-section (1) of section 73, subject to the condition that the grounds relied upon in the said statement, except the ground of fraud, or any wilful-misstatement or suppression of facts to evade tax, for periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) pays the said tax along with interest payable under section 50 and a penalty equivalent to twenty-five per cent of such tax within thirty days of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous refund.
(11) Where any person served with an order issued under sub-section (9) pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent of such tax within thirty days of communication of the order, all proceedings in respect of the said notice shall be deemed to be concluded.
(12) The provisions of this section shall be applicable for determination of tax pertaining to the period upto Financial Year 2023-24.]
Explanation 1.— For the purposes of section 73 and this section,—
| (i) | the expression “all proceedings in respect of the said notice” shall not include proceedings under section 132; | |
| (ii) | where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under 46a[sections 122 and 125] are deemed to be concluded. |
Section – 74A, Central Goods And Services Tax Act, 2017
Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward.
74A. (1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder:
Provided that no notice shall be issued, if the tax which has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised in a financial year is less than Rs 1000.
(2) The proper officer shall issue the notice under sub-section (1) within 42 months from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within 42 months from the date of erroneous refund.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The penalty in case where any tax which has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised,-
| (i) | for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, shall be equivalent to 10%. of tax due from such person or Rs 10,000, whichever is higher; | |
| (ii) | for the reason of fraud or any wilful-misstatement or suppression of facts to evade tax shall be equivalent to the tax due from such person. i.e., 100% of Tax |
(6) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order.
(7) The proper officer shall issue the order under sub-section (6) within 12 months from the date of issuance of notice specified in sub-section (2):
Provided that where the proper officer is not able to issue the order within the specified period, the Commissioner, or an officer authorised by the Commissioner senior in rank to the proper officer but not below the rank of Joint Commissioner of Central Tax, may, having regard to the reasons for delay in issuance of the order under sub-section (6), to be recorded in writing, before the expiry of the specified period, extend the said period further by a maximum of 6 months.
(8) The person chargeable with tax where any tax 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, may,-
| (i) | before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment, and the proper officer, on receipt of such information shall not serve any notice under sub-section (1) or the statement under sub-section (3), as the case may be, in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder; | |
| (ii) | pay the said tax along with interest payable under section 50 within 60 days of issue of show cause notice, and on doing so, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. |
(9) The person chargeable with tax, 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-misstatement or suppression of facts to evade tax, may,-
| (i) | before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment, and the proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder; | |
| (ii) | pay the said tax along with interest payable under section 50 and a penalty equivalent to twenty-five per cent. of such tax within sixty days of issue of the notice, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded; | |
| (iii) | pay the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such tax within sixty days of communication of the order, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded. |
(10) Where the proper officer is of the opinion that the amount paid under clause (i) of sub-section (8) or clause (i) of sub-section (9) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(11) Notwithstanding anything contained in clause (i) or clause (ii) of sub-section (8), penalty under clause (i) of sub-section (5) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.
(12) The provisions of this section shall be applicable for determination of tax pertaining to the Financial Year 2024-25 onwards.
Explanation 1. — For the purposes of this section,—
| (i) | the expression “all proceedings in respect of the said notice” shall not include proceedings under section 132; | |
| (ii) | where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under this section, the proceedings against all the persons liable to pay penalty under sections 122 and 125 are deemed to be concluded. | |
Explanation 2.— For the purposes of this Act, the expression “suppression” shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer.
