I have been registered uder composition. I have unknowingly made Inter State Supply in FY 2019-20 & FY 2020-21. I have received a notice u/s 74 regarding the same, directing me to pay tax @18? on total turnover from those 2 financial years.
Is there any way to reduce my liability?
Can I adjust the liabilty with ITC on purchases made in those two financial years?
Are there any case laws regarding the same?
Challenge GST notice under extended liability; argue Section 74 misapplied, seek recharacterization under Section 73 and penalty waiver Registered composition taxpayer made inter-state supplies in two FYs, rendering them ineligible for the composition scheme and exposing turnover to regular GST, interest, and penalties. Revenue issued a notice under the extended-time provision for tax not paid/short paid; the taxpayer can contest that there was no fraud, willful misstatement, or suppression so proceedings should lie under the normal provision (with its shorter limitation) rather than the extended provision. Input tax credit is claimable only if the taxpayer had validly migrated and availed ITC in returns for those periods. Challenge the notice, seek recharacterization to the non-fraud provision, and request waiver/reduction of penalties. (AI Summary)
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