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Notice U/S 73 & DRC-01 Validity?

GST (10 Points)

17 March 2024

Sir/Ma'am,

I was issued DRC-01 on 03/05/2022 for F.Y. 2018-19. But no action was taken by the Proper Officer at that time. But now on 23/11/2023 DRC-01A intimation was issued in which it is written that "You are hereby advised to pay the amount of tax as ascertained above along with the amount of applicable interest in full by 27/12/2023, failing which Show Cause Notice will be issued under Section 73(1)". The last date to issue DRC-01 u/s 73 was 31/01/2024 for F.Y. 2018-19. But he did not issue any Show Cause Notice issued under Section 73(1) till 31/01/2024.

Now my question: Is my case time-barred for F.Y. 2018-19?

What happens now?

Thank You in advance.

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2 Replies

Money Money (413 Points)
Replied 18 March 2024

Your case is not time-barred for the financial year 2018-19. Let me explain the implications and considerations based on the recent changes:

Extension of Time Limits:
The Ministry of Finance has extended the time limits for issuing notices related to GST compliance matters for the financial years 2018-19 and 2019-20.
For FY 2018-19, show cause notices can now be issued until 31st January 2024, which extends the original deadline by one month.
Orders related to the recovery of tax not paid, short paid, or input tax credit wrongly availed or utilized can be issued until 30th April 2024, also extended by one month1.
Section 73 and Section 74:
The extended deadlines specifically apply to time-barring periods under Section 73 of the CGST Act.
Under Section 73, the GST department has an additional two years to issue notices and orders for cases other than fraud or wilful misstatement.
However, the GST department still has an additional two years to issue notices and orders under Section 74 for suppression/misrepresentation cases1.
Consideration for Taxpayers:
For cases related to the financial year 2018-19 at the ASMT-10/DRC-01A stage, taxpayers should be aware of the extended timeline.
The department should allow a sufficient reply period of 15-30 days for these notices to ensure that taxpayers have a reasonable opportunity to be heard1.
Conclusion:
The extension of time limits provides a more realistic timeframe for both the GST department and taxpayers to address compliance matters effectively.
It is crucial for taxpayers to be aware of these extended deadlines and take advantage of the additional time provided to ensure a fair and just resolution of their cases1.
In summary, your case is not time-barred, and you should respond to the DRC-01A intimation within the specified timeline.

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GST (10 Points)
Replied 18 March 2024

But sir only intimation u/s DRC-01A was issued on 23/11/2023 after that SCN DRC-01 was not issued for F.Y. 2018-19 till the extended date of 31/01/2024.