Dear sir
Recently we have received an show cause notice from gst department regarding dobule eway bill generate few supply for the period 2018.19,
In this regard we have completed GST audit by gst officer up to 2020.21period, after that department send scn, this is only part load material supply, first eway bill generated by supplier during the goods movement, when goods not delivered then customer generated new e way bill on same goods,
Kindly advice what to do
Ideally the first eway bill should have been cancelled but since it has not been done you can explain your case to the department by submitting reply with documentary evidence that it was generated twice but the first one related only to goods which were not sent for movement and that there is only one supply.
Getting a Section 74 notice is more serious than a regular Section 73 demand because it carries a fraud or suppression allegation. The most important time-bound action: if you pay the tax plus interest plus 25% penalty within 30 days of the notice, proceedings conclude without a full adjudication order. If you wait until after the order, the penalty rises to 50%. Before doing anything, check whether the allegation is actually suppression or a genuine ITC mismatch or rate error, because you can contest the Section 74 classification and argue Section 73 applies (which has a lower penalty structure).
More on the penalty math and notice timelines in this [GST penalty guide](https://taxgarden.in/blog/gst-late-fee-interest-penalty-gstr-3b-gstr-1-gstr-9-guide).
CCI
Pro
CAclubindia
