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 Evasion Under Section 74: Notice, Penalties, and Resolution Process Explained for Kerala GST Ordinance 2017

Section 74 of the Kerala Goods and Services Tax Ordinance, 2017, addresses cases where tax is not paid, short paid, erroneously refunded, or input tax credit is wrongly availed due to fraud, misstatement, or suppression of facts. The proper officer must issue a notice to the person liable for the tax, requiring them to show cause and pay the specified amount with interest and penalties. The notice must be issued at least six months before the time limit for issuing an order. If the person pays the tax, interest, and a reduced penalty before the notice, further proceedings may be avoided. The officer must determine the due amount and issue an order within five years. Payment of tax, interest, and a higher penalty within 30 days of the order concludes proceedings.