Tax Consultant
1993 Points
Posted on 31 August 2026
Sections 73 and 74 have their own standalone trigger conditions but interact with several other CGST Act sections.
Key dependencies:
- Section 73 (non-fraud) and Section 74 (fraud/wilful suppression) define WHEN and WHY a notice is issued and the penalty rates (10% vs up to 100%)
- Section 75 governs general provisions common to both (hearing rights, DRC form procedure, time limits for orders)
- Section 79 covers recovery if the demand order goes unpaid
- Section 107 covers first appeal to Appellate Authority
IMPORTANT UPDATE FOR 2026: For FY 2024-25 and later, Sections 73 and 74 have been REPLACED by the new Section 74A (inserted effective December 2024). If you received a notice for FY 2024-25 onwards citing Section 73 or 74, it is legally infirm - raise this objection in your DRC-06 reply.
For FY 2017-18 to 2023-24, the old 73/74 framework continues. Always check which financial year the notice pertains to before drafting your response.
This [GST DRC-01 notice reply guide](https://taxgarden.in/blog/gst-drc-01-show-cause-notice-reply-drc-06-guide-india-2026) covers how to file your DRC-06 and what to include in the reply for different notice types.