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 Discrepancies Under Section 74: Notice Issued for Fraud or Misstatement with 5-Year Limitation and Settlement Options

Section 74 of the Andhra Pradesh Goods and Services Tax Act, 2017 addresses the determination of tax discrepancies due to fraud, willful misstatement, or suppression of facts. It mandates that a proper officer must issue a notice to the person liable for unpaid, short-paid, or erroneously refunded tax, or wrongly availed input tax credit, requiring them to explain why they should not pay the specified amount with interest and penalties. The notice must be issued at least six months before the five-year limitation period. The person can settle the liability by paying the tax, interest, and a reduced penalty before or within 30 days of receiving the notice or order.