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: Tax Recovery for Fraud or Misstatement under Jharkhand GST Act 2017 Explained in Simple Terms

Section 74 of the Jharkhand Goods and Services Tax Act, 2017 addresses tax recovery in cases of fraud, willful misstatement, or suppression of facts. If a proper officer identifies unpaid, short-paid, or erroneously refunded taxes, or wrongly availed input tax credits due to such reasons, they must issue a notice to the taxpayer. The taxpayer can preemptively pay the tax, interest, and a 15% penalty to avoid notice. If the payment is insufficient, a notice is issued. Paying the tax, interest, and a 25% penalty within 30 days of notice, or a 50% penalty within 30 days of an order, concludes proceedings. The order must be issued within five years from the relevant financial year's return due date or erroneous refund date.