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Section 74 Determination of tax not paid,

CGST Act, 2017 SEARCH THIS BLOG

Posted on 10 June 2022     Category : GST Law (/GST-Law/default.aspx)

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CGST Act, 2017, sec 74 Determination of tax Section 28 of CGST Act, 2017
(/Amendment-of-registration-
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Section 29 of CGST Act, 2017
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(/Section-29-of-CGST-Act-2017-
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Act,2017. Revocation of cancellation of
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erroneously refunded or input tax credit wrongly availed or utilised by reason of

Prohibition of unauthorised
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(/Prohibition-of-
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The extract of Section 74 of CGST Act,2017 quoted below: Credit and debit notes, Section 34
of CGST Act, 2017
(/Credit-and-
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Act-2017-5391.aspx)
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 wilful misstatement or Section 37 of CGST Act, 2017
Furnishing details of outward
suppression of facts. supplies
(/Section-37-of-CGST-
Act-2017-Furnishing-details-of-
 
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74. (1) Where it appears to the proper officer that any tax has not been paid or short
Section 39 of CGST Act, 2017
Furnishing of returns
(/Section-
paid or erroneously refunded or where input tax credit has been wrongly availed or
39-of-CGST-Act-2017-
utilised Furnishing-of-returns-5408.aspx)

by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax,

First return, Section 40 of CGST
he shall Act, 2017
(/First-return-Section-
40-of-CGST-Act-2017-5412.aspx)
(/UserFiles/Windows-Live-Writer/Section-74-Determination-of- Section 42 of CGST Act, 2017
tax-not- Matching, reversal and reclaim of
input tax credit
(/Section-42-of-
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Matching, reversal and reclaim of

reduction in output tax liability,
Section 43 of CGST Act, 2017
(/Matching-reversal-and-reclaim-
paid_D8B1/Section%2074%20Determination%20of%20tax%20not%20paid,%20CGST%20Act,%202017_2.jpg)
of-reduction-in-outp-5415.aspx) serv
notice on the person chargeable with tax which has not been so paid or which has
been

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so short paid or to whom the refund has erroneously been made, or who has
wrongly availed
GSTR-3B filing under GST
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or utilised input tax credit, requiring him to show cause as to why he should not pay 3B-filing-under-GST-22215.aspx)

the
DDP delivery terms, 08
amount specified in the notice along with interest payable thereon under section 50 disadvantages to Importer
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penalty equivalent to the tax specified in the notice.

DDP delivery terms, 07
advantages to importer
(/DDP-
(2) The proper officer shall issue the notice under sub-section (1) at least six
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months importer-22213.aspx)

prior to the time limit specified in sub-section (10) for issuance of order. 06 Major Drawbacks to exporter
under DDP delivery terms
(/06-
(3) Where a notice has been issued for any period under sub-section (1), the proper Major-Drawbacks-to-exporter-
under-DDP-delivery--22212.aspx)
officer may serve a statement, containing the details of tax not paid or short paid or
erroneously 10 Advantages for exporter under
DDP terms
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refunded or input tax credit wrongly availed or utilised for such periods other than exporter-under-DDP-terms-
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those

covered under sub-section (1), on the person chargeable with tax. DPU delivery terms, 09
weaknesses from importer’s
(4) The service of statement under sub-section (3) shall be deemed to be service of perspective
(/DPU-delivery-terms-
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notice under sub-section (1) of section 73, subject to the condition that the grounds 22210.aspx)

relied
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upon in the said statement, except the ground of fraud, or any wilful-misstatement DPU delivery terms?
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suppression of facts to evade tax, for periods other than those covered under
07 Dangers when an exporter
contracts DPU delivery terms
(/07-
sub-section (1) are the same as are mentioned in the earlier notice.
Dangers-when-an-exporter-
contracts-DPU-delivery-
(5) The person chargeable with tax may, before service of notice under
22208.aspx)

sub-section (1), pay the amount of tax along with interest payable under section 50
09 Advantages to exporter under
and a DPU delivery terms
(/09-
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penalty equivalent to fifteen per cent. of such tax on the basis of his own DPU-delivery-terms-22207.aspx)
ascertainment of
08 flies in the ointment when a
such tax or the tax as ascertained by the proper officer and inform the proper officer buyer contracts DAP delivery
terms
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of such payment.

(6) The proper officer, on receipt of such information, shall not serve any notice
Track Your Air Shipment Here
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provisions of
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this Act or the rules made thereunder.
439.aspx)

(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
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the

notice as provided for in sub-section (1) in respect of such amount which falls short What is CIF terms of delivery in
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amount actually payable. and-Impor-25.aspx)

(8) Where any person chargeable with tax under sub-section (1) pays the said tax Who should register with SVB
(Special Valuation Branch)
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along with interest payable under section 50 and a penalty equivalent to twenty-five should-register-with-SVB-Special-
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per cent.

of such tax within thirty days of issue of the notice, all proceedings in respect of the 6 digit HS codes Chapter 52
COTTON, INC. YARNS WOVEN
said
FABRICS THEREOF (part 1)
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notice shall be deemed to be concluded. COTTON-INC-YARNS-WOVEN-
744.aspx)
(9) The proper officer shall, after considering the representation, if any, made by the

DEEC Declaration
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from such

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  Bank Release Order (BRO) in

Imports
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(10) The proper officer shall issue the order under sub-section (9) within a period of BRO-in-Imports-240.aspx)

five years from the due date for furnishing of annual return for the financial year to Use of ventilated containers
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which the

tax not paid or short paid or input tax credit wrongly availed or utilised relates to or HS CODE Chapter 20 PREPS OF
VEGS, FRUITS, NUTS, ETC.4 digits
within five
(/HS-CODE-Chapter-20-PREPS-OF-
VEGS-FRUITS-NUTS-ETC-4-
years from the date of erroneous refund.
606.aspx)

(11) Where any person served with an order issued under sub-section (9) pays the
FEMA declaration for exporters
tax instead of SDF form
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along with interest payable thereon under section 50 and a penalty equivalent to fifty of-SDF-form-1728.aspx)
per
Central Tax Notification No 24 of
cent. of such tax within thirty days of communication of the order, all proceedings in 2018 dt 28th May, 2018 under GST
(/Central-Tax-Notification-No-24-
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of the said notice shall be deemed to be concluded.

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 sections 122,

125, 129 and 130 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.

The above information clarifies about 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 wilful misstatement or suppression of facts under section 74 of CGST
Act,2017.  

If you have any comments about Section 74 of CGST Act, 2017 explaining
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 wilful misstatement or
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