Quick Summary
The CBIC videCircular No. 185/17/2022-GST dated December 27, 2022issued a clarification with regard to the applicability of provisions of section 75(2) of the Central Goods and Services Tax Act, 2017 (the CGST Act) and its effect on limitation. Attention is invited to sub-section (2) of section 7
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The circular clarifies the applicability of Section 75(2) of the CGST Act, 2017, and its effect on the time limits for re-determining tax liabilities when a fraud-based notice is deemed unsustainable.
If fraud or wilful misstatement isn't established, the proper officer must re-determine the tax payable as if the notice was issued under Section 73 of the CGST Act.
The proper officer must issue the order for re-determination within two years from the date the appellate authority's direction is communicated.
The amount is re-computed considering the provisions of Section 73(2) and 73(10) of the CGST Act, meaning the initial show cause notice must have been issued within the prescribed time limits.
Generally, a show cause notice under Section 73 must be issued at least 3 months before the expiry of the time limit for issuing an order, which is typically three years from the due date of the annual return or date of erroneous refund.
If the Section 74 notice was issued beyond the time limits specified in Section 73 (e.g., over 2 years and 9 months from the annual return due date for non-fraud cases), the proceedings must be dropped entirely.
CAclubindia
