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 Notice for Unpaid Taxes or Erroneous Refunds Due to Fraud or Misstatement

Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017 addresses the determination of unpaid or short-paid taxes, erroneous refunds, or wrongly availed or utilized input tax credits due to fraud, willful misstatement, or suppression of facts. It mandates the proper officer to issue a notice to the concerned party, requiring them to justify why they should not pay the specified tax amount, interest, and penalty. The notice must be issued six months before the time limit for order issuance. If the taxpayer pays the tax, interest, and a reduced penalty before the notice, proceedings may be concluded. The officer must issue a determination order within five years of the relevant financial year's return due date or refund date.