1. Legal Framework
Section 73 (Non-fraud cases)
- Order: To be issued within 3 years from the due date of furnishing Annual Return (GSTR-9).
- Notice: To be issued at least 3 months prior to the limitation date for order.
- Reference: Section 73(2) & 73(10), CGST Act.
Section 74 (Fraud, wilful misstatement, suppression cases)
- Order: To be issued within 5 years from the due date of furnishing Annual Return (GSTR-9).
- Notice: To be issued at least 6 months prior to the limitation date for order.
- Reference: Section 74(2) & 74(10), CGST Act.
⚖️ Both sections are directly linked to the due date of GSTR-9, including extensions granted through Notifications.
Compliance Alert as of 30th September 2025
- Last date to issue Notice u/s 73 for FY 2021-22.
- Last date to issue Notice u/s 74 for FY 2019-20.
- Taxpayers must closely monitor their GST portal for any notices issued before expiry of these limitation periods.
A. GSTR-9 (Annual Return) Due Dates
| FY | GSTR-9 Due Date | Legal Provision / Notification |
|---|---|---|
| 2017-18 | 05-02-2020 (07-02-2020 for some States) | Notification No. 09/2020 |
| 2018-19 | 31-12-2020 | Notification No. 80/2020 |
| 2019-20 | 31-03-2021 | Notification No. 04/2021 |
| 2020-21 | 28-02-2022 | Rule 80(1A) |
| 2021-22 | 31-12-2022 | Rule 80(1) |
| 2022-23 | 31-12-2023 (10-01-2024 for some TN districts) | Rule 80(1) / 80(1B) |
| 2023-24 | 31-12-2024 | Rule 80(1) |
B. Section 73 (Non-Fraud Cases) – 3 Years Limit for issue of Notice
| FY | Notice (≥3 months before) | Order (within 3 years) | Legal Reference |
|---|---|---|---|
| 2017-18 | 30-09-2023 | 31-12-2023 | Notification 09/2023 |
| 2018-19 | 31-01-2024 | 30-04-2024 | Notification 56/2023 |
| 2019-20 | 31-05-2024 | 31-08-2024 | Notification 56/2023 |
| 2020-21 | 30-11-2024 | 28-02-2025 | Sec. 73(10) |
| 2021-22 | 30-09-2025 | 31-12-2025 | Sec. 73(10) |
| 2022-23 | 30-09-2026 | 31-12-2026 | Sec. 73(10) |
| 2023-24 | 30-09-2027 | 31-12-2027 | Sec. 73(10) |
C. Section 74 (Fraud / Suppression Cases) – 5 Years Limit for issuance of Notice
| FY | Notice (≥6 months before) | Order (within 5 years) | Legal Reference |
|---|---|---|---|
| 2017-18 | 05-08-2024 | 05-02-2025 | Sec. 74(10) |
| 2018-19 | 30-06-2025 | 31-12-2025 | Sec. 74(10) |
| 2019-20 | 30-09-2025 | 31-03-2026 | Sec. 74(10) |
| 2020-21 | 31-08-2026 | 28-02-2027 | Sec. 74(10) |
| 2021-22 | 30-06-2027 | 31-12-2027 | Sec. 74(10) |
| 2022-23 | 30-06-2028 | 31-12-2028 | Sec. 74(10) |
| 2023-24 | 30-06-2029 | 31-12-2029 | Sec. 74(10) |
Applicability (Sec. 73(1))
- Tax not paid, short paid, or ITC wrongly availed/utilised without fraud, wilful misstatement, or suppression of facts.
Key Provisions
- Show Cause Notice (SCN): To be issued at least 3 months before the last date for order.
- Order: To be passed within 3 years from due date of GSTR-9 of relevant FY.
- Voluntary Payment (before SCN, Sec. 73(8)): Tax + Interest → No penalty; proceedings closed.
- Payment within 30 days of SCN: Tax + Interest → No penalty.
Penalty (Sec. 73(9))
- Nil (if paid before SCN or within 30 days of SCN).
- 10% of tax or ₹10,000 (whichever is higher), if order is passed and dues unpaid.
Section 74 – Fraud / Suppression Cases
Applicability
- Tax not paid, short paid, or ITC wrongly availed/utilised due to fraud, wilful misstatement, or suppression of facts to evade tax.
Key Provisions
- Show Cause Notice (Sec. 74(2)): To be issued at least 6 months before the last date for order.
- Order (Sec. 74(10)): To be passed within 5 years from due date of GSTR-9.
- Voluntary Payment (before SCN, Sec. 74(5)): Tax + Interest + 15% penalty → proceedings closed.
- Payment within 30 days of SCN (Sec. 74(8)): Tax + Interest + 25% penalty → proceedings closed.
- Payment within 30 days of order (Sec. 74(11)): Tax + Interest + 50% penalty → proceedings closed.
Penalty
- 100% of tax (if order confirmed and dues unpaid within 30 days).
Section 73 vs Section 74 – At a Glance
| Particulars | Section 73 (Non-Fraud) | Section 74 (Fraud/Suppression) |
|---|---|---|
| Reason for Demand | Non-payment/short payment/ITC error without fraud | Non-payment/short payment/ITC error with fraud/suppression |
| Time limit for Order | 3 years from GSTR-9 due date | 5 years from GSTR-9 due date |
| Time limit for Notice | ≥ 3 months before order | ≥ 6 months before order |
| Voluntary Payment (before SCN) | Tax + Interest (No penalty) | Tax + Interest + 15% penalty |
| Payment within 30 days of SCN | Tax + Interest (No penalty) | Tax + Interest + 25% penalty |
| Payment within 30 days of Order | Tax + Interest + 10% penalty (or ₹10,000, whichever higher) | Tax + Interest + 50% penalty |
| Maximum Penalty | 10% of tax or ₹10,000 | 100% of tax |
| Intent to Evade | ❌ No | ✅ Yes |