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 GST: Section 74 Demands Tax Payment, Interest, and Penalty for Fraud or Misstatement

Section 74 of the Gujarat Goods and Services Tax Act, 2017 addresses cases where tax has not been paid, short paid, erroneously refunded, or input tax credit wrongly availed due to fraud, misstatement, or suppression of facts. The proper officer must issue a notice to the liable party, demanding payment of the specified tax amount, interest, and a penalty. The notice must be issued six months before the time limit for the order. If the taxpayer pays the due amount and penalties within specified periods, proceedings may be concluded. The officer must issue a determination order within five years from the relevant due date.