Sections 73-75 CGST Act 2017 prescribe procedures for tax DEMANDS wher…

Question

Sections 73-75 CGST Act 2017 prescribe procedures for tax DEMANDS where TAX has been NOT PAID OR SHORT PAID:

Accepted Answer

D.

1. CGST Act 2017 distinguishes SHOW CAUSE NOTICE / DEMAND procedures:
2. SECTION 73 — for cases NOT INVOLVING FRAUD/SUPPRESSION/MISSTATEMENT:
3. (i) Time limit for SCN: 3 YEARS from filing of relevant annual return;
4. (ii) Order to be issued within 3 years from due date.
5. (iii) PENALTIES (graded):
6. (a) 10% of tax if assessee pays before SCN;
7. (b) NIL if pays within 30 days of SCN.
8. SECTION 74 — for cases INVOLVING FRAUD, WILFUL MISSTATEMENT, OR SUPPRESSION:
9. (i) Time limit for SCN: 5 YEARS from filing of relevant annual return;
10. (ii) Order to be issued within 5 years.
11. (iii) PENALTIES (severe, graded):
12. (a) 15% of tax if paid before SCN;
13. (b) 25% if paid within 30 days of SCN;
14. (c) 50% if paid within 30 days of order;
15. (d) 100% otherwise.
16. Section 75 — common procedural provisions.
17. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — CGST Act 2017, Sections 73-75_