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Explanation 2 of section 74 of CGST Act - case laws
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....xplanation 2 of section 74 of CGST Act - case laws<br> Query (Issue) Started By: - HimangshuKumar Ray Dated:- 30-4-2026 Last Reply Date:- 7-5-2026 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Learned Senior Members / Members, Kindly post citation of case laws related to "Suppression" etc. as per explanation 2 of section 74 of the CGST Act. Reply By KASTURI SETHI: T....
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....he Reply: Dear Querist, Please elaborate your query with a specific purpose so as to enable the experts to post only relevant case laws on the issue. Reply By Mahesh: The Reply: https://www.taxtmi.com/manuals?id=4736&allSearchQueries=suppression&lawId=all&searchIn=aiMain&sort=default You may refer this. Reply By Pinnacle Tax Advisor: The Reply: Explanation 2 of section 7....
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....4 of CGST has already been omitted by the Finance Act, 2024. In general, suppression of fact means- non declaration of facts or hiding something which is required to be declared by the taxpayer to the GST authorities. There are multiple case laws where act of suppression has been described. You may please explain the allegation of suppression you have for relevat case references Reply By KALLES....
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....HAMURTHY MURTHY K.N.: The Reply: Explanation 2 of Sec 74 of the CGST Act is effective for the period up to 2023-24 and amended on account of the introduction of Sec. 74A applicable from 2024-25 onwards. One case law on this may refer to M/s Sriba Nirman Company vs. Commissioner (Appeals) & Others (Andhra Pradesh High Court) - 2025 (1) TMI 1518 - ANDHRA PRADESH HIGH COURT W.P. No. 25826/2023....
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.... dt. 29-01-2025, in which it was held that even non-filing of returns and non-payment of taxes amounts to suppression, attracting the penalty as applicable and this decision is affirmed by the Hon'ble S.C. Reply By YAGAY andSUN: The Reply: Here are concise citations of key case laws on "suppression" under Explanation 2 to Section 74 of the CGST Act: Important Judgments • V....
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....adilal Enterprises Ltd. v. State of U.P. - 2025 (6) TMI 1149 - ALLAHABAD HIGH COURT SCN invalid if it does not clearly allege fraud/suppression. Specific pleading is mandatory. • Raghuvansh Agro Farms Ltd. v. State of U.P. - 2025 (12) TMI 1236 - ALLAHABAD HIGH COURT Proceedings quashed due to absence of findings on suppression. Mens rea (intent) req....
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....uired. • NCS Pearson Inc. v. Union of India - 2025 (9) TMI 1205 - KARNATAKA HIGH COURT No suppression if facts already within department's knowledge. Extended limitation not applicable. • Adigarla Bapinaidu v. State of Andhra Pradesh Explanation 2 covers non-filing, but Section 74 needs wilful suppression. • M/s Sriba Nirman Com....
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....pany v. Commissioner - 2025 (1) TMI 1518 - ANDHRA PRADESH HIGH COURT Continuous non-compliance can indicate wilful suppression. • Ayyappan Pillai v. State Tax Officer - 2024 (10) TMI 606 - KERALA HIGH COURT Suppression must be linked to intent to evade tax. • Union of India v. Northern Operating Systems Pvt. Ltd. - 2022 (5) TMI 967 - SUPREME COURT ....
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.... Burden on department to prove suppression with evidence. • Gayathri Cloth & General Stores v. State of A.P. Mere allegation without evidence is insufficient. Core Legal Principles • Explanation 2 defines suppression broadly, but Section 74 applies only to wilful suppression. • Intent to evade tax (mens rea) is essential. • Departme....
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....nt must prove suppression with evidence. • No suppression if facts are already known/disclosed. • SCN must expressly allege suppression, else invalid. In short: "Suppression" under GST = deliberate non-disclosure with intent to evade tax, not mere omission. Reply By KASTURI SETHI: The Reply: Dear Querist, In order to legally save from the clutches of Section 74....
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.... or 74A of CGST Act, you must carefully read pro-revenue case laws, in addition to the pro-assessee case laws suggested by the experts. Such case laws are easily available on TMI. Reply By HimangshuKumar Ray: The Reply: Thanks to all Learned members and quick reply.<br> Discussion Forum - Knowledge Sharing ....