What is the time limit for notice under section 73?
Asked by: Letitia Rau DDS | Last update: February 11, 2026Score: 4.5/5 (60 votes)
Under Section 73 of India's CGST Act, the time limit for issuing a Show Cause Notice (SCN) is at least three months before the deadline for the final assessment order, which itself must be issued within three years from the due date of the annual return for that financial year, applying to non-fraud cases of GST short-payment or non-payment. This means the SCN must be issued well in advance (e.g., by November 28, 2024, for a March 2025 order deadline) to give taxpayers time to respond.
What is the time limit for Section 73 notice?
Section 73: Demand Notice for Non-Fraud Cases
This section covers short payment, non-payment, or erroneous refunds without any fraudulent intent. – Time limit to issue notice: 3 years from the due date of filing annual return for the relevant year.
Can we issue a credit note after 2 years?
Debit Notes or Credit Notes can be issued anytime. There is no prescribed time limit for issuing them. Both the Debit Notes and Credit Notes that are issued should be declared in the GST returns.
What is the time limit for GST audit notice?
The registered person shall be informed by way of a notice of not less than fifteen working days before the conduct of audit in Form GST ADT-01. As per Section 65(4) , audit of registered person shall be completed within three months from the date of commencement of audit.
What is the penalty for Section 73?
(9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.
Time Limits for Issue of Notice & Orders under Section 73 and Section 74 of GST | CA Mohit Jain
What are the latest updates on section 73?
Effective September 18, 2022, Senate Bill 1340 (Stats. 2022, ch. 425) amends section 73 to extend the new construction exclusion for active solar energy systems from 2023-24 to the 2025-26 fiscal year and changes the repeal date from January 1, 2025, to January 1, 2027.
How to respond to a section 73 notice?
You can respond to a demand notice u/s 73 of the CGST Act in the following ways:
- The demand is correct and the payment is pending.
- The demand is correct and the payment is already done.
- The demand is not fully correct.
- The demand is partially correct.
How many years back can a company be audited?
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years.
What is the GST amnesty scheme for Section 73 cases?
The GST Amnesty Scheme offers a great opportunity for taxpayers to settle pending disputes under Section 73 of the GST Act by waiving interest and penalty provided the full tax amount is paid within time period specified above and adhering to all prescribed conditions.
What is the time limit for GST notice under Section 74?
Section 74 of the CGST Act time limit
For Section 74, the time limits are: For issuing notice - 6 months before the expiry of 5 years from the due date of filing the annual return in which the incident occurred. For issuing an order- 5 years from the due date of filing the annual return on which the incident occurred.
What is the last date to issue credit note under GST?
Time Limit for Issuing a Credit Note
Credit notes must also be filed by thirty November of the following financial year or before filing annual return, whichever is earlier. Late reporting may result in loss of input tax credit adjustment or risk of penalty.
What is the time limit for GST credit?
Deadline for Claiming Input Tax Credit
According to the updated provision, the last date to claim ITC under GST is whichever comes earlier: The 30th of November following the end of the relevant financial year or. The date of filing the annual GST return using Form GSTR 9.
What is the time limit for invoice issue under GST?
If the invoice is issued after provision of service, it has to be done within the specified period of 30 days from the date of supply of service, as per invoice rules.
Can GST penalty be waived off?
If there is an amnesty announced by the government for the default, then the GST penalty could be conditionally waived off.
What if an invoice is not issued within 30 days?
Under the current guidelines, users must upload invoices within 30 days from the invoice date. If you miss this window, the IRP will reject the invoice, which means it won't be considered valid for GST compliance or for claiming input tax credit.
How does section 73 relate to GST audits?
Section 73 of CGST Act addresses one of the most common concerns businesses face: what happens when you've made an honest mistake in your GST filings? This provision specifically deals with tax recovery in cases where there's no fraud or wilful misstatement involved.
What is the time limit for Section 73 of GST Act?
Section 73(10) of the CGST Act requires the proper officer to issue order under Section 73(9) within three years from the due date for furnishing of relevant annual return.
What is the deadline for GST Amnesty?
The GST Amnesty Scheme 2024 offers a valuable opportunity for taxpayers to settle past GST disputes from FY 2017-18 to 2019-20 with a waiver of interest and penalties under Section 73. To avail the benefit, full tax payment must be made by March 31, 2025, and the application must be filed by June 30, 2025.
Which DRC is considered as pre-scn intimation?
Where a pre-show cause notice consultation is issued in Form GST DRC-01A, the person can submit a reply, or intimate about his payment in respect of the same, or both in Part-B of Form GST DRC-01A.
Does IRS forgive after 10 years?
Yes, IRS debt generally goes away after 10 years from the assessment date, known as the Collection Statute Expiration Date (CSED), but this clock can pause or extend due to various actions like installment agreements, bankruptcy, or court judgments, meaning it doesn't always disappear automatically and can last longer. Key exceptions include fraud, no tax return filed, and specific extensions that stop the clock (tolling), allowing collection indefinitely in some cases.
What is the 2 year rule for audit?
The 2-year rule for audit is quite simple. If a company meets two or more of the above criteria for two years in a row, then it must have a statutory audit. Conversely, a firm that currently has to be audited can't qualify for an audit exemption until it fails to meet at least two over the criteria over two years.
What is the IRS 7 year rule?
The IRS 7-year rule generally refers to the extended time you need to keep tax records if you file a claim for a loss from worthless securities or a bad debt deduction, giving you up to 7 years from the due date of the return to claim a refund or credit for those specific issues. While the standard record retention is usually 3 years, this 7-year period ensures you have documentation for these specific, potentially complex, financial losses.
What is a section 73 notice?
Permission granted under section 73 takes effect as a new, independent permission to carry out the same development as previously permitted subject to new or amended conditions. The new permission sits alongside the original permission, which remains intact and unamended.
What is the time limit for GST audit?
The audit will be completed within 3 months from the date of commencement of the audit. The Commissioner can extend the audit period for a further six months with reasons recorded in writing.
Who is exempt from 1% cash payment in GST?
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.