Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued a detailed clarification confirming that consolidated GST demand notices covering multiple financial years are legally permissible under the CGST Act. Through a letter dated September 16, 2025 (F. No. CBIC-20010/67/2025-GST/994), the GST Policy Wing has formally addressed recurring litigation challenging the validity of such composite notices before various High Courts across the country. According to CBIC, Sections 73 and 74 of
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1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
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FAQ :
Yes, the CBIC has clarified that consolidated GST demand notices covering multiple financial years are legally permissible under the CGST Act.
Sections 73 and 74 of the CGST Act allow officers to issue show cause notices 'for any period,' enabling the consolidation of multiple financial years into a single notice, as long as the limitation period for each year is met.
No, the consolidation is a procedural mechanism. Each financial year within the consolidated notice is still assessed independently for statutory limitation periods.
Consolidated notices help avoid duplication of proceedings, improve administrative efficiency, and reduce the compliance burden on taxpayers who would otherwise receive multiple separate notices.
Yes, receiving a consolidated notice does not prevent taxpayers from accessing benefits under the GST Amnesty Scheme or other relief mechanisms like compounding of offences.
The clarification draws support from the Delhi High Court's judgment in Ambika Traders v. Additional Commissioner (Adjudication), DGST, which upheld the validity of consolidated show cause notices.
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