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.

Tax Recovery for Fraud or Misstatement: Notice and Order Timeline Under Section 74 of GST Act 2017

Section 74 of the West Bengal Goods and Services Tax Act, 2017 addresses the recovery of taxes not paid, short paid, erroneously refunded, or input tax credit wrongly availed due to fraud or willful misstatement. It mandates that a proper officer must issue a notice to the liable party, requiring them to justify why they should not pay the specified tax amount, interest, and penalty. The notice must be issued at least six months before the time limit for an order. If the taxpayer pays the due amount with interest and a reduced penalty promptly, proceedings may be concluded. The officer must issue an order within five years from the relevant financial year's due date.