Section 74 of CGST Act,2017 – Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful misstatement or suppression of facts

Section 74 of CGST Act,2017 from bare act :
(1) Where it appears to the proper officer that any tax has not been paid or shortpaid or erroneously refunded or where input tax credit has been wrongly availed or utilisedby reason of fraud, or any willful-misstatement or suppression of facts to evade tax, he shallserve notice on the person chargeable with tax which has not been so paid or which has beenso short paid or to whom the refund has erroneously been made, or who has wrongly availedor utilised input tax credit, requiring him to show cause as to why he should not pay theamount specified in the notice along with interest payable thereon under section 50 and apenalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub-section (1) at least six monthsprior 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 properofficer may serve a statement, containing the details of tax not paid or short paid or erroneouslyrefunded or input tax credit wrongly availed or utilised for such periods other than thosecovered under sub-section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be service ofnotice under sub-section (1) of section 73, subject to the condition that the grounds reliedupon in the said statement, except the ground of fraud, or any willful-misstatement orsuppression of facts to evade tax, for periods other than those covered undersub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice undersub-section (1), pay the amount of tax along with interest payable under section 50 and apenalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment ofsuch tax or the tax as ascertained by the proper officer and inform the proper officer in writingof such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice undersub-section (1), in respect of the tax so paid or any penalty payable under the provisions ofthis Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid undersub-section (5) falls short of the amount actually payable, he shall proceed to issue thenotice as provided for in sub-section (1) in respect of such amount which falls short of theamount actually payable.
(8) Where any person chargeable with tax under sub-section (1) pays the said taxalong with interest payable under section 50 and a penalty equivalent to twenty-five per cent.of such tax within thirty days of issue of the notice, all proceedings in respect of the saidnotice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by theperson chargeable with tax, determine the amount of tax, interest and penalty due from suchperson and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within a period offive years from the due date for furnishing of annual return for the financial year to which thetax not paid or short paid or input tax credit wrongly availed or utilised relates to or within fiveyears from the date of erroneous refund.
(11) Where any person served with an order issued under sub-section (9) pays the taxalong with interest payable thereon under section 50 and a penalty equivalent to fifty percent. of such tax within thirty days of communication of the order, all proceedings in respectof the said notice shall be deemed to be concluded.

Explanation 1.For the purposes of section 73 and this section,

(i) the expression all proceedings in respect of the said notice shall notinclude proceedings under section 132;

(ii) where the notice under the same proceedings is issued to the mainperson liable to pay tax and some other persons, and such proceedings againstthe main person have been concluded under section 73 or section 74, theproceedings against all the persons liable to pay penalty under sections 122,125, 129 and 130 are deemed to be concluded.

Explanation 2.For the purposes of this Act, the expression suppressionshall mean non-declaration of facts or information which a taxable person is required todeclare in the return, statement, report or any other document furnished under this Actor the rules made thereunder, or failure to furnish any information on being asked for,in writing, by the proper officer.

CHAPTER XV

DEMANDS AND RECOVERY

Chapter XV of the CGST Act,2017 covers twelve sections relating toDEMANDS & RECOVERYunder GST. All thesesections from the CGST Act,2017 are available for your ready reference.
Section 73 :Determinationof tax notpaid or shortpaid orerroneouslyrefunded orinput taxcredit wronglyavailed orutilised forany reasonother thanfraud or anywillful misstatementor suppressionof facts
Section 74 :Determinationof tax notpaid or shortpaid orerroneouslyrefunded orinput taxcredit wronglyavailed orutilised byreason offraud or any willfulmisstatementor suppressionof facts
Section 75 :Generalprovisionsrelating todeterminationof tax
Section 76 :Tax collectedbut not paid toGovernment
Section 77 :Taxwrongfullycollected andpaid toCentralGovernmentor StateGovernment
Section 78 :Initiation ofrecoveryproceedings
Section 79 :Recovery oftax
Section 80 :Payment oftax and otheramount ininstallments
Section 81 :Transfer ofproperty tobe void incertain cases
Section82:Tax to befirst chargeon property
Section 83 :Provisionalattachment toprotectrevenue incertain cases
Section 84 :Continuationand validationof certainrecoveryproceedings