SCN of multiple years under section 74

[SUSHIL BANSAL]

Dera experts,

Our client received one SCN u/s 74 of FY 18-19 & 19-20 for the alleged fake purchase & thereby proposed disallowance of ITC & liability for Int & penalty. In the summary of DRC 01, the tax amount has been shown in FY 18-19 columns, though our alleged fake purchases are in FY 19-20. Now if we reply that during FY 18-19 we have not made any such purchases & then in assessment whether we will be taxed in FY 18-19 or 19-20. & if the dept does not issue a separate SCN for FY 19-20 before 30.09.2025, then whether our matter is over.

plz guide

AI Summary

Limitation under Section 74: year-wise SCN specificity prevents time-barred GST demands for mismatched invoice periods.
Where a composite SCN attributes tax to the wrong financial year, the primary defence is factual mismatch: invoices relate to a different year than the SCN/DRC-01 indicates. Each financial year's liability must be assessed separately and a valid SCN for a year must be issued within that year's statutory limitation; absence of a year-wise breakup or pre-SCN intimation can render the demand for the omitted year void and time-barred.