show- cause notice limitaion for 2017-18 18-19

[giri gattupalli]

respected sir,

department is issuing intimation letters to taxable persons relates to FY 2017-18 ,2018-19 in respect of differences between GSTR-1 data and GSTR-3B data and asking for explanation. and notices are giving under SEC-74 . my doubt is whether , issues relates to differences between GSTR-1 and GSTR-3B covered under sec-74 notices or not . please guide me

thanking you

[KASTURI SETHI]

The difference or mismatching of figures between GSTR-1 and GSTR-3B is very serious matter. However, this may be happening due to delay in filling GSTR-1 by the suppliers. The books of account is very much basis. If your client's transactions are genuine, there is nothing to worry. You are to justify the difference to the concerned officers with the books of account. Yes, Section 74 can be invoked in the SCN because the difference may be due to misdeclaration of figures in GST returns. Only scrutiny of the records by the department will clear the picture.

[Padmanathan KV]

The onus is on dept to prove that there is fraud/ suppression/ misstatement with intention to evade tax. What is the specific allegation for invoking section 74 in the SCN?

[KASTURI SETHI]

Undoubtedly indeed. 

[Shilpi Jain]

You have no choice but to reply to those notices and make submissions to support your stand of no suppression. Filing a Writ for this is not advisable since Courts would not entertain these kind of issues which can rather be taken up in adjudication.

AI Summary

Concerns Over Show-Cause Notices Under GST Act Section 74 for GSTR Discrepancies in 2017-18 and 2018-19 Discussed A discussion on a forum addresses concerns about show-cause notices issued under Section 74 of the GST Act for discrepancies between GSTR-1 and GSTR-3B for fiscal years 2017-18 and 2018-19. Participants advise that such discrepancies could be due to delayed filings and emphasize the importance of maintaining accurate books of account. They suggest that if transactions are genuine, there should be no concern, but the taxpayer must justify any differences to the authorities. It is noted that the department must prove any fraud or misstatement, and filing a writ is not recommended as courts prefer adjudication.