GST demand and determination: procedure for issuing show cause notices and adjudicating tax, interest and penalty liabilities.

Demand and determination under GST arise when self-assessed tax is short paid, not paid, erroneously refunded, or input tax credit is wrongly availed or utilised. The Proper Officer may detect such discrepancies by verification, scrutiny, audit or investigation and must issue a show cause notice followed by adjudication to determine tax, interest and penalties. Cases involving fraud, willful misstatement or suppression of facts follow a distinct, stricter determination route, while tax collected but not deposited is subject to a separate demand procedure.

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