Fraud-based GST tax determination allows notice, reduced pre-payment, and closure of proceedings on timely payment.

Section 74 of the Central Goods and Services Tax Act, 2017 governs determination of tax where tax has not been paid, has been short paid, has been erroneously refunded, or input tax credit has been wrongly availed or utilised by reason of fraud, wilful misstatement, or suppression of facts to evade tax. It provides for show-cause notice, pre-notice payment with reduced penalty, issue of statement for other periods, determination of tax, interest and penalty after representation, limitation for passing order, and conclusion of proceedings on payment within specified time. The section applies to periods up to Financial Year 2023-24.

---

---

---