Timelines for Issuing SCN and Orders under Section 73 & 74 of CGST Act, 2017

Timelines for Issuing SCN and Orders under Section 73 & 74 of CGST Act, 2017 The Goods and Services Tax (GST) law provides strict timelines for the issuance of Show Cause Notices (SCNs) and passing of adjudication orders under Section 73 and Section 74 of the CGST Act, 2017. These provisions aim to ensure certainty, fairness, and timely closure of disputes between taxpayers and the department. Section 73 of the Act deals with cases where tax has not been paid or has been short paid, but the lapse is not due to fraud, willful misstatement, or suppression of facts. For such cases, the proper officer is required to pass an order within three years from the due date of furnishing the annual return for the relevant financial year, or from the date of erroneous refund, whichever is later. Further, the show cause notice must be issued at least three months prior to the expiry of this three-year period. On the other hand, Section 74 covers cases involving fraud, willful misstatement, or suppression of facts with the intent to evade tax. Since these matters are considered more serious in nature, the law provides a longer time frame to the department. The proper officer must pass the order within five years from the due date of furnishing the annual return for the relevant financial year, or from the date of erroneous refund, whichever is later. In such cases, the SCN is required to be issued at least six months prior to the expiry of the five-year period. Time Limit For Issuance Of SCNs And Orders Under Section 73 & 74 Of CGST Act, 2017 Financial Year (FY) Section 73 Section 74 SCN Order SCN Order 2017-18 30-Sep-23 31-Dec-23 5-Aug-24 5-Feb-25 2018-19 31-Jan-24 30-Apr-24 30-Jun-25 31-Dec-25 2019-20 31-May-24 31-Aug-24 30-Sep-25 31-Mar-26 2020-21 30-Nov-24 28-Feb-25 31-Aug-26 28-Feb-27 2021-22 30-Sep-25 31-Dec-25 30-Jun-27 31-Dec-27 2022-23 30-Sep-26 31-Dec-26 30-Jun-28 31-Dec-28 2023-24 30-Sep-27 31-Dec-27 30-Jun-29 31-Dec-29