Section 74 – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilfulmisstatement or suppression of facts of CGST ACT, 2017<\/p>\n
74. (1) Where it appears to the proper officer that any tax has not been paid or short
\npaid or erroneously refunded or where input tax credit has been wrongly availed or utilised
\nby reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall
\nserve notice on the person chargeable with tax which has not been so paid or which has been
\nso short paid or to whom the refund has erroneously been made, or who has wrongly availed
\nor utilised input tax credit, requiring him to show cause as to why he should not pay the
\namount specified in the notice along with interest payable thereon under section 50 and a
\npenalty equivalent to the tax specified in the notice.
\n(2) The proper officer shall issue the notice under sub-section (1) at least six months
\nprior to the time limit specified in sub-section (10) for issuance of order.
\n(3) Where a notice has been issued for any period under sub-section (1), the proper
\nofficer may serve a statement, containing the details of tax not paid or short paid or erroneously
\nrefunded or input tax credit wrongly availed or utilised for such periods other than those
\ncovered under sub-section (1), on the person chargeable with tax.
\n(4) The service of statement under sub-section (3) shall be deemed to be service of
\nnotice under sub-section (1) of section 73, subject to the condition that the grounds relied
\nupon in the said statement, except the ground of fraud, or any wilful-misstatement or
\nsuppression of facts to evade tax, for periods other than those covered under
\nsub-section (1) are the same as are mentioned in the earlier notice.
\n(5) The person chargeable with tax may, before service of notice under
\nsub-section (1), pay the amount of tax along with interest payable under section 50 and a
\npenalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of
\nsuch tax or the tax as ascertained by the proper officer and inform the proper officer in writing
\nof such payment.
\n(6) The proper officer, on receipt of such information, shall not serve any notice under
\nsub-section (1), in respect of the tax so paid or any penalty payable under the provisions of
\nthis Act or the rules made thereunder.
\n(7) Where the proper officer is of the opinion that the amount paid under
\nsub-section (5) falls short of the amount actually payable, he shall proceed to issue the
\nnotice as provided for in sub-section (1) in respect of such amount which falls short of the
\namount actually payable.
\n(8) Where any person chargeable with tax under sub-section (1) pays the said tax
\nalong with interest payable under section 50 and a penalty equivalent to twenty-five per cent.
\nof such tax within thirty days of issue of the notice, all proceedings in respect of the said
\nnotice shall be deemed to be concluded.
\n(9) The proper officer shall, after considering the representation, if any, made by the
\nperson chargeable with tax, determine the amount of tax, interest and penalty due from such
\nperson and issue an order.
\n(10) The proper officer shall issue the order under sub-section (9) within a period of
\nfive years from the due date for furnishing of annual return for the financial year to which the
\ntax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five
\nyears from the date of erroneous refund.
\n(11) Where any person served with an order issued under sub-section (9) pays the tax
\nalong with interest payable thereon under section 50 and a penalty equivalent to fifty per
\ncent. of such tax within thirty days of communication of the order, all proceedings in respect
\nof the said notice shall be deemed to be concluded.
\nExplanation 1.\u2014For the purposes of section 73 and this section,\u2014
\n(i) the expression \u201call proceedings in respect of the said notice\u201d shall not
\ninclude proceedings under section 132;<\/p>\n
(ii) where the notice under the same proceedings is issued to the main
\nperson liable to pay tax and some other persons, and such proceedings against
\nthe main person have been concluded under section 73 or section 74, the
\nproceedings against all the persons liable to pay penalty under sections 122,
\n125, 129 and 130 are deemed to be concluded.
\nExplanation 2.\u2013\u2013For the purposes of this Act, the expression \u201csuppression\u201d
\nshall mean non-declaration of facts or information which a taxable person is required to
\ndeclare in the return, statement, report or any other document furnished under this Act
\nor the rules made thereunder, or failure to furnish any information on being asked for,
\nin writing, by the proper officer.<\/p>\n","protected":false},"excerpt":{"rendered":"
Section 74 – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilfulmisstatement or suppression of facts of CGST ACT, 2017 74. (1) Where it appears to the proper officer that any tax has not been paid or short … Continue reading “Section 74 – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilfulmisstatement or suppression of facts of CGST ACT, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/275"}],"collection":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=275"}],"version-history":[{"count":1,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/275\/revisions"}],"predecessor-version":[{"id":276,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/275\/revisions\/276"}],"wp:attachment":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}