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In a significant update relevant to GST compliance and litigation, the Central Board of Indirect Taxes and Customs (CBIC) has clarified the time limits for issuance of Show Cause Notices (SCNs) and Orders under Sections 73 and 74 of the Central Goods and Services Tax (CGST) Act, 2017.
This timeline is crucial for both taxpayers and professionals to monitor possible demand notices and adjudications, especially as the window of limitation draws near for earlier financial years.
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What Are Sections 73 and 74 of CGST Act?
- Section 73 pertains to cases not involving fraud or willful misstatement, allowing a three-year time frame from the due date for filing annual returns.
- Section 74 deals with cases involving fraud, suppression of facts, or willful misstatement, with a five-year time frame for issuing orders.
Time Limits for Issuance of SCNs and Orders
| Financial Year | Section 73 – SCN | Section 73 – Order | Section 74 – SCN | Section 74 – Order |
| FY 2017-18 | 30th Sept 2023 | 31st Dec 2023 | 5th Aug 2024 | 5th Feb 2025 |
| FY 2018-19 | 31st Jan 2024 | 30th Apr 2024 | 30th June 2025 | 31st Dec 2025 |
| FY 2019-20 | 31st May 2024 | 31st Aug 2024 | 30th Sept 2025 | 31st Mar 2026 |
| FY 2020-21 | 30th Nov 2024 | 28th Feb 2025 | 31st Aug 2026 | 28th Feb 2027 |
| FY 2021-22 | 30th Sept 2025 | 31st Dec 2025 | 30th June 2027 | 31st Dec 2027 |
| FY 2022-23 | 30th Sept 2026 | 31st Dec 2026 | 30th June 2028 | 31st Dec 2028 |
| FY 2023-24 | 30th Sept 2027 | 31st Dec 2027 | 30th June 2029 | 31st Dec 2029 |
Why This Matters
Taxpayers need to keep a close eye on these deadlines to:
- Avoid surprise demands.
- Prepare for audit responses or representations.
- Seek legal recourse if SCNs or Orders are issued beyond the permissible period.
Practical Tip for Businesses
If your business has GST exposure from past years, especially FY 2017-18 to 2019-20, it is prudent to:
- Revisit GST returns and annual filings.
- Consult legal counsel for risk mitigation strategies.
- Prepare for potential SCNs within the limitation periods stated above.
Read More: Delhi High Court Quashes Reassessment Against Departmental Stores Selling Wine, Beer
