GST SECTION

This query is : Resolved

S. RAVICHANDRAN (Querist)
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08 September 2024 One of my client received SCN u/s 74 of the GST Act. for discrepancies found in audit under section 65 for the year 2018-19. There is no outward tax liability short payment, there is no misstatement of facts or incrimminating records found in the audit. The GST turnover tallied with Income tax returns. Only GSTR-3B vs GSTR-2A differences only. The difference also adjusted during the time of filed Annual Return. The RCM liability also discharged. The DRC-07 issued by the department for the difference of GSTR-2A vs GSTR-3B taxes with interest and penalty. Kindly let me know the case law in favour of the client. The discripancy comes under section 73 only not for sectiion 74. Can we file rectification with the proper officer or filing the appeal. Kindly give any format for section mismatch issued by the department.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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10 September 2024 You can file your strong objections to the invoking of section 74 mentioning all facts and documentary evidence as well as mentioning that department must prove fraudulent intention, misrepresentation or suppression of facts. Department cannot invoke section 74 mechanically without establishing a clear case of fraud, misrepresentation or suppression of facts. There is no direct case law on this issue as of now.