GST Notice & Order Time Limits Under Sections 73, 74 & 74A – Complete Guide

The GST law prescribes specific time limits for issuing Show Cause Notices (SCN) and passing assessment orders under Sections 73, 74, and the newly introduced Section 74A of the CGST Act, 2017. Understanding these timelines is essential for businesses to manage GST compliance, departmental notices, and litigation risks effectively.

Section 73 – Non-Fraud Cases

Section 73 applies in cases involving:

• Short payment of tax
• Non-payment of tax
• Wrong availment of ITC
• Erroneous refund

where there is no fraud, suppression, or wilful misstatement involved.

Time Limit Under Section 73

• SCN must be issued within 3 years from the due date of filing Annual Return (GSTR-9)
• Final order must be passed within 3 years and 3 months from the due date of GSTR-9

Penalty

• 10% of tax amount or ₹10,000, whichever is higher

Example:

For FY 2021-22:

• GSTR-9 due date: 31 December 2022
• SCN deadline: 30 September 2025
• Order deadline: 31 December 2025

Section 74 – Fraud or Suppression Cases

Section 74 applies when tax issues involve:

• Fraud
• Wilful misstatement
• Suppression of facts

Time Limit Under Section 74

• SCN must be issued within 5 years from the due date of GSTR-9
• Final order must be passed within 5 years and 6 months from the due date of GSTR-9

Penalty

• Penalty equal to 100% of tax amount

Example:

For FY 2021-22:

• GSTR-9 due date: 31 December 2022
• SCN deadline: 30 June 2027
• Order deadline: 31 December 2027

Introduction of Section 74A

The Finance Act, 2024 introduced Section 74A, effective from FY 2024-25 onwards. This section merges proceedings earlier covered under Sections 73 and 74 into a common framework.

Key Features of Section 74A

• Applicable from FY 2024-25 onwards
• Common procedure for fraud and non-fraud cases
• Single SCN and adjudication process

Time Limits Under Section 74A

• SCN to be issued within 42 months from due date of GSTR-9
• Final order to be passed within 12 months from date of SCN

Example:

For FY 2024-25:

• GSTR-9 due date: 31 December 2025
• SCN deadline: 30 June 2029
• Order deadline: 30 June 2030

Important Exceptions

The following situations impact limitation periods:

Court or Tribunal Stay

Any stay granted by a Court or Tribunal is excluded while calculating limitation periods.

Erroneous Refund Cases

In cases involving erroneous refunds, limitation is calculated from the refund order date and not from GSTR-9 due date.

Section 76 Cases

Where tax is collected from customers but not deposited with the Government, no specific time limit applies.

Why Businesses Should Track GST Timelines

Monitoring GST notice timelines helps businesses:

• Respond to notices effectively
• Avoid unnecessary penalties
• Maintain proper documentation
• Plan litigation strategy
• Reduce compliance risks

Businesses should preserve GST records, reconciliations, and supporting documents for relevant financial years to handle departmental proceedings smoothly.

Conclusion

The timelines under Sections 73, 74, and 74A play a critical role in GST litigation and compliance management. With the introduction of Section 74A from FY 2024-25 onwards, taxpayers should stay updated with the revised adjudication framework and departmental powers under GST law.

Proper record maintenance and timely professional advice can significantly reduce GST disputes and compliance exposure.

For expert guidance on this topic, contact your tax professional today.