Karnataka Clarifies Tax Re-determination Time Limits Under GST Act Section 75(2) for Unsustainable Fraud Notices.

The circular issued by the Karnataka Department of Commercial Taxes clarifies the application of Section 75(2) of the Karnataka Goods and Services Tax Act, 2017, particularly regarding time limits for re-determining tax liabilities. When a notice under Section 74 is deemed unsustainable due to lack of fraud, the tax must be re-determined under Section 73. The proper officer has two years from the appellate authority's direction to issue a re-determination order. The notice must be issued within 2 years and 9 months from the due date of the annual return or erroneous refund date. Cases falling outside this period must be dropped due to time limitations.

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