Section 74 - 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 wilful-misstatement or suppression of facts.

Section 74: Recovering Unpaid Taxes & Penalties for Fraud, Misstatement, or Suppression Under GST Act 2017

Section 74 of the Puducherry Goods and Services Tax Act, 2017, addresses the recovery of unpaid or short-paid taxes, erroneous refunds, or wrongly availed input tax credit due to fraud, willful misstatement, or suppression of facts. It mandates that a proper officer issue a notice to the liable party, requiring them to justify why they should not pay the specified tax, interest, and penalty. The notice must be issued at least six months before the five-year limit for order issuance. The liable party can settle the tax with reduced penalties before or within 30 days of the notice or order.