Section 73 of CGST Act, 2017 Determination of tax not paid

 

 

Determination of tax not paid, Sec 73 of CGST Act, 2017

 

The below post explains about 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 wilful misstatement or suppression of facts under section 73 of CGST Act,2017.

 

Section 73 of CGST Act, 2017 explains 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 wilful misstatement or suppression of facts as below: (The amendments if any will also be updated here soon).

 

The extract of Section 73 of CGST Act,2017 quoted below:

 

73  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 wilful misstatement or suppression of facts.

 

73. (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

Section 73 of CGST Act, 2017 Determination of tax not paidfacts 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 sub-section (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 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.

The above information clarifies about 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 wilful misstatement or suppression of facts under section 73 of CGST Act,2017.  

 

If you have any comments about Section 73 of CGST Act, 2017 explaining 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 wilful misstatement or suppression of facts, share below your thoughts:

 

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