Clarification with regard to applicability of provisions of section 75(2) of Central Goods and Services Tax Act, 2017 and its effect on limitation

Limitation for GST re determination: redetermine tax only within prescribed limitation following appellate direction and compute interest and penalty accordingly.

Orders under directions deeming a section 74 notice to be a section 73 notice must be issued within two years from communication of the appellate direction. Re determination of tax, interest and penalty must follow section 73 read with section 73(10): only amounts for which a show cause notice could validly have been issued within the section 73 time window (including cases of erroneous refund) can be recovered; notices issued beyond that window are barred by limitation and proceedings must be dropped. For multi year notices, re determination applies only to years within the permissible time window.