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What is GST sec 73

K Giribabu Naik (Accounts Manager) (32 Points)

24 November 2021

please share details of GST sec 73

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Vikas Prajapati (CA) (249 Points)
Replied 24 November 2021

Notice of Demand under GST

Following is the extract of bare act

Determination of tax not paid or short paid or erroneously refunded or
input tax credit wrongly availed or utilised for any reason other than fraud or any
willful-misstatement or suppression of facts.— (1) Where it appears to the proper
officer that any tax has not been paid or short paid or erroneously refunded, or where
input tax credit has been wrongly availed or utilised for any reason, other than the reason
of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve
notice on the person chargeable with tax which has not been so paid or which has been so
short paid or to whom the refund has erroneously been made, or who has wrongly availed
or utilised input tax credit, requiring him to show cause as to why he should not pay the
amount specified in the notice along with interest payable thereon under section 50 and a
penalty leviable under the provisions of this Act or the rules made thereunder.
(2) The proper officer shall issue the notice under sub-section (1) at least three
months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the
proper officer may serve a statement, containing the details of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised for such periods other
than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on
such person under sub-section (1), subject to the condition that the grounds relied upon
for such tax periods other than those covered under sub-section (1) are the same as are
mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under subsection
(1) or, as the case may be, the statement under sub-section (3), pay the amount of
tax along with interest payable thereon under section 50 on the basis of his own
ascertainment of such tax or the tax as ascertained by the proper officer and inform the
proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice
CHAPTER XV DEMANDS AND RECOVERY
108
under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect
of the tax so paid or any penalty payable under the provisions of this Act or the rules
made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the amount actually payable, he shall proceed to issue the
notice as provided for in sub-section (1) in respect of such amount which falls short of the
amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section
(3) pays the said tax along with interest payable under section 50 within thirty days of
issue of show cause notice, no penalty shall be payable and all proceedings in respect of
the said notice shall be deemed to be concluded.
(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.
(10) The proper officer shall issue the order under sub-section (9) within three
years from the due date for furnishing of annual return for the financial year to which the
tax not paid or short paid or input tax credit wrongly availed or utilised relates to or
within three years from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8),
penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any
amount collected as tax has not been paid within a period of thirty days from the due date
of payment of such tax.