TaxTMI 
TaxTMI 
Clarification with regard to applicability of provisions of section 75(2) of Karnataka Goods and Services Tax Act, 2017 and its effect on limitation
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.... invited to sub-section (2) of section 75 of Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as "KGST Act") which provides that in cases where the appellate authority or appellate tribunal or court concludes that the notice issued by proper officer under sub-section (l) of section 74 is not sustainable for reason that the charges of fraud or any willful-misstatement or suppression of facts to evade tax have not been established against the person to whom such notice was issued (hereinafter called as "noticee"), then the proper officer shall determine the tax payable by the noticee, deeming as if the notice was issued under sub-section (1) of section 73. 2. Doubts have been raised by the field formations seeking clarif....
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....the notice to have been issued under sub-section (1) of section 73 of KGST Act, in accordance with the provisions of sub-section (2) of section 75 of KGST Act. What would be the time period for re-determination of the tax, interest and penalty payable by the noticee in such cases? • Sub-section (3) of section 75 of KGST Act provides that an order, required to be issued in pursuance of the directions of the appellate authority or appellate tribunal or the court, has to be issued within two years from the date of communication of the said direction. • Accordingly, in cases where any direction is issued by the appellate authority or appellate tribunal or the court to re-determine the....
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.... tax credit has been wrongly availed or utilized, in cases which do not involve fraud or wilful misstatement or suppression of facts to evade tax. Sub-section (2) of section 73 of KGST Act provides that such show cause notice shall be issued at least 3 months prior to the time limit specified in sub-section 10 of section 73 for issuance of order. As per sub-section (9) of section 73 of KGST Act, the proper officer is required to determine the tax, interest and penalty due from the noticee and issue an order. As per sub-section (10) of section 73 of KGST Act, an order under sub-section (9) of section 73 has to be issued by the proper officer within thre....
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.... Thus, only the amount of tax short paid or not paid, or input tax credit wrongly availed or utilized, along with interest and penalty payable, in terms of section 73 of KGST Act relating to such financial years can be re-determined, where show cause notice was issued within 2 years and 9 months from the due date of furnishing of annual return for the respective financial year. Similarly, the amount of tax payable on account of erroneous refund along with interest and penalty payable can be re-determined only where show cause notice was issued within 2 years and 9 months from the date of erroneous refund. • In case, where the show cause notice under sub-section (1) of section 74 was ....