TaxTMI 
TaxTMI 
Goods and Service Tax under Sec-73 and 74
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....oods and Service Tax under Sec-73 and 74 <br> Query (Issue) Started By: - giri gattupalli Dated:- 28-8-2026 Goods and Services Tax - GST <br> Got 2 Replies <br> GST<br> <br> Respected Sir, One of my client is a works Contractor dealing in Govt. Civil works only. He has received during F.Y. 2025-26 he has received an amount of Rupees One Crore (Approx) and paid GST @ 12% as the work executed during....
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.... F.Y.2018-19 and the bill received during 2025-26 after long pending with Government due to some legal issues with Govt. and now the Department issued notice u/s 74 asking to pay tax @ 18% in the above circumstances whether the notice u/s 74 is sustainable. Please discuss. --Reply By: Sanjeev Agarwal The Reply: My preliminary view: the section 74 notice is strongly contestable, particularly on:....
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.... * Time of supply - work was executed in FY 2018-19; payment in FY 2025-26 does not automatically determine the applicable rate. * Rate - if 12% was the applicable rate when the supply became taxable, 18% cannot ordinarily be imposed merely because payment was delayed. * Section 74 ingredients - mere rate dispute does not establish fraud/suppression with intent to evade tax. * Limitation - for....
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.... FY 2018-19, this should be examined as a preliminary jurisdictional objection. Before replying to the notice, please check the exact date of work completion, invoice date, date of filing of the relevant GSTR-1/3B, date of receipt of payment, date of annual return, and date of issue of the section 74 notice. These dates can determine whether the demand is time-barred altogether. --Reply By: giri g....
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....attupalli The Reply: respected sir, i try to elaborate above query 1. taxable person is a govt works contractor. 2. around 1 cr received for works executed to govt. 3. GSTR-7 uploaded by contractee department and accepted by taxable person on gst website by filing tds returns. 4. turnover disclosed in gstr-3B and gst paid @12% .( and the contractee department awarded 12% gst only.) 5. turnover ....
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....disclosed in ITR also. and now the ellegation is 12% paid instead of 18%. and sec 74 notice issued. please discuss whether notice under sec 74 sustainable as the turnover is disclosed in gst returns before issuence of notice <br>***<br> Discussion Forum - Knowledge Sharing....