12 August 2025
Key Points on Time Bar for Penalty Notices under GST: As per Section 73/74 of CGST Act, the time limit to issue a show cause notice or penalty notice is generally 3 years from the due date of filing the relevant return. Since FY 2018-19 ended on 31 March 2019, the limitation period for issuing penalty notices for that year would typically expire by 31 March 2022 (3 years from filing due date), unless extended by law or special circumstances. Your options: File a reply citing limitation: Reply to the DRC-01 notice stating that the notice is time-barred as per limitation period prescribed under GST laws. Quote relevant provisions (Section 73(6), Section 74(7) etc.) about limitation. Attach supporting documents: Proof of date of filing return, or date when the time bar should expire. Follow up if department insists: If the department proceeds despite limitation, you may consider legal remedy like filing an appeal or writ citing limitation. Consult GST legal expert if needed.
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