What is the time limit for Section 73?

Asked by: Hollie Hagenes  |  Last update: May 28, 2026
Score: 4.3/5 (5 votes)

For Section 73 of India's CGST Act (non-fraud cases of tax short payment/erroneous refund), the time limit to issue the final order is three years from the annual return's due date, requiring the Show Cause Notice (SCN) to be issued at least three months before that limit expires (around 2 years and 9 months from the due date), with extensions possible via government notification for specific financial years.

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 interest be waived under section 73?

Can interest be waived under Section 73? No, interest cannot be waived under Section 73 of CGST Act 2017. Interest is compensatory in nature and must be paid even if you make a voluntary payment before receiving an SCN.

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 penalty for Section 73?

Section 73 of CGST Act allows taxpayers to avoid GST penalties if tax shortfall is paid voluntarily or within 30 days of notice. It applies to cases with no fraud. Pay through DRC-03, save penalty, and stay compliant.

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28 related questions found

What is Section 73 removal of condition?

Section 73 (s73) of the Town and Country Planning Act 1990 allows for planning applications to be made for the variation or removal of a condition on an existing planning permission. Different forms from those used for ordinary planning applications are required for s73 applications.

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 is the difference between Section 73 and 74?

Section 73 applies to any tax liability when there is no suspicion of fraud, wilful misstatement or suppression of facts. Section 74 applies to a tax liability only when there is a suspicion of fraud, wilful misstatement or suppression of facts.

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 happens if I don't reply to a GST notice?

In case, the applicant does not reply to the notice within the stipulated time or the Tax Official is not satisfied with the reply filed by the applicant, he may proceed further to issue Refund Rejection/ Sanction Order in Form GST RFD-06 for sanctioning/rejecting the amount of refund in whole or part.

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.

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 happens if interest is not paid on GST?

Interest on Late Payment of GST:

An interest on late payment of GST is of 18% per annum and will be charged for the days after the due date.

What is the difference between Section 73 and 74 of the ICA?

Section 73 of the Contract Act pertains specifically to liquidated damages, which are predetermined amounts agreed upon by the party at the time of the contract. Section 74 deals with unliquidated damages, addressing situations where the parties have not predetermined the compensation in the event of a breach.

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:

  1. The demand is correct and the payment is pending.
  2. The demand is correct and the payment is already done.
  3. The demand is not fully correct.
  4. The demand is partially correct.

What is the 180 days rule in GST?

Section 16(2) and Rule 37

If he made proportionate payment to supplier with GST within 180 days then he has to reverse ITC proportionately . If No payment is made within 180 days, then whole the ITC has to be reversed. When the payment is made to the supplier ITC reversed will be reclaimed .

Is there a time limit on credit notes?

You need to issue the credit note within 15 days of the end of the month in which goods or services are supplied.

Can I claim ITC after 2 years?

Time Limits for Claiming ITC

If the supplier has paid the tax on the supply, you have up to 12 months from the date of supply to claim ITC. If the supplier has not paid the tax on the supply, you have up to 36 months from the date of supply to claim ITC.

What is the time limit for cancellation of GST invoice?

Once cancelled, the same document (with same document number) can't be reported again for generation of IRN. The cancellation is required to be done within 24 hours from the time of generation.

What conditions must be met for an award to qualify for an exclusion under section 74?

Section 74(b) provides an exclusion from gross income of any amount received as a prize or award, if (1) such prize or award was made primarily in recognition of past achievements of the recipient in religious, charitable, scientific, educational, artistic, literary, or civic fields; (2) the recipient was selected ...

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 Section 74?

🔴 Section 74 — For Fraudulent Cases Applicability: Fraud, suppression, or willful misstatement. Notice Time Limit: SCN ≥ 6 months before 5 years from Annual Return due date. Penalty: ▪️ 15% if paid early.

What is the new amnesty scheme 2025?

The scheme provides an opportunity to employers and insured persons to settle disputes outside courts in a structured and transparent manner. It will remain in operation from 1st October 2025 to 30th September 2026. For coverage disputes, the scheme applies to both closed and running units.

What happens if you can't pay GST?

Penalties for a late GST return

You'll be charged a penalty for late filing – $50 if you're on the payments basis; $250 if you're on the hybrid or invoice basis. The penalty is due for payment before the 28th of the month after the return was due.

What is the penalty for Section 73 of the GST Act?

(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.