Section 74 - Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.

Section 74 of CGST Act: Tax Recovery for Fraud or Misstatement, Orders Due Within Five Years

Section 74 of the Central Goods and Services Tax Act, 2017, addresses the recovery of unpaid or short-paid taxes, erroneous refunds, or wrongly availed input tax credits due to fraud, willful misstatement, or suppression of facts. The proper officer must issue a notice to the liable party, requiring them to justify why they should not pay the specified tax, interest, and penalties. If the party pays the tax, interest, and a reduced penalty before the notice is served, no further notice is required. Final orders must be issued within five years from the relevant financial year's due date. These provisions apply up to the financial year 2023-24.