Section 74A

Section 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward

Date Issued: 16 August 2024
State: CBIC
Source: CGST Act 2017
Views: 28

Summary

Section 74A acts as a comprehensive, consolidated provision governing all tax demands and recovery procedures starting from Financial Year 2024-25 onwards, effectively replacing the dual tracks of Section 73 (non-fraud) and Section 74 (fraud) cases. It streamlines administration by establishing a uniform 42-month timeline for issuing a Show Cause Notice for any reason whatsoever, while introducing a minor de-minimis relief exempting demands under ₹1,000 from notices. While the ultimate penalty structure remains distinct at adjudication (10% or ₹10,000 for non-fraud vs. 100% for fraud), it offers an extended 60-day cure window providing taxpayers generous opportunities to settle disputes with zero or reduced penalties at various procedural checkpoints.