Section 67 - Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful-misstatement or suppression of facts

Section 67 GST Law: Procedures for Unpaid Taxes, Erroneous Refunds, and Wrongly Availed Credits Due to Fraud

Section 67 of the Model GST Law outlines the procedures for addressing unpaid or short-paid taxes, erroneous refunds, or wrongly availed input tax credits due to fraud, willful misstatement, or suppression of facts. It mandates that a proper officer must issue a notice to the liable party, requiring them to show cause and pay the specified amount with interest and penalties. Notices must be issued six months before the time limit for order issuance. Taxpayers may settle dues with reduced penalties before notice issuance. The proper officer must determine and order the due amounts within five years from the relevant annual return's due date.