Procedure for issue of SCN and Adjudication order [Section 73 & 74] - GST Ready Reckoner - GST

Procedure for issue of SCN and Adjudication order Communication of amount payable before issue of SCN [ Rule 142(1A) ] The proper officer may, before service of notice to the person chargeable with tax, interest and penalty, under section 73(1) or section 74(1) [ or section 74A(1) (inserted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024)) ] , as the case may be, communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A . Serve the SCN after communication of detail of amount due Notice issued in FORM GST DRC-01 , in following cases :- under section 52 or section 73 or section 74 [ or section 74A (inserted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024) ] or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 a summary thereof electronically Statement of detail of amount due issued in FORM GST DRC-02 , under section 73(3) or section 74(3) [ or section 74A(3) (inserted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024)) ] , a summary thereof electronically specifying therein the details of the amount payable. [ Rule 142(1) ] Voluntary payment of amount due Communication of payment of amount due Before the service of notice or statement the person chargeable with tax makes payment of the tax and interest accordance with of section 73(5) [ or Section 74(5) or section 74A(8)(i), as the case may be, or tax, interest and penalty in accordance with the provisions of section 74(5) or section 74A(9)(i) (substituted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024) ] ; or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act whether on his own ascertainment or, as communicated by the proper officer under rule 142(1A) , he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement , accepting the payment made by the said person in FORM GST DRC-04 . he shall inform the proper officer of such payment in FORM GST DRC-03 and an acknowledgement, in FORM GST DRC - 04 shall be made available to the person through the common portal electronically. [ Substituted vide Notification No. 12/2024 Central Tax dated 10-07-2024 ] [ Rule 142(2) ] Partial payment of demand Where the person referred to in rule 142(1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A and thereafter the proper officer may issue an intimation in Part-C of FORM GST DRC-01A, accepting the payment or the submissions or both, as the case may be, made by the said person. [ Inserted vide Notification No. 12/2024 Central Tax dated 10-07-2024 ] [ Rule 142(2A) ] Manner of payment - Demand order issued in Form GST DRC 03/05 [ Inserted vide Notification No. 12/2024 Central Tax dated 10-07-2024 ] [ Rule 142(2B) ] Where an amount of tax, interest, penalty or any other amount payable by a person under section 52 or section 73 or section 74 [ or section 74A (inserted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024)) ] or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 , has been paid by the said person through an intimation in FORM GST DRC-03 under rule 142(2), instead of crediting the said amount in the electronic liability register in FORM GST PMT 01 against the debit entry created for the said demand, the said person may file an application in FORM GST DRC-03A electronically on the common portal, and the amount so paid and intimated through FORM GST DRC-03 shall be credited in Electronic Liability Register in FORM GST PMT 01 against the debit entry created for the said demand, as if the said payment was made towards the said demand on the date of such intimation made through FORM GST DRC-03. where an order in FORM GST DRC-05 has been issued in terms of rule 142(3) concluding the proceedings, in respect of the payment of an amount in FORM GST DRC-03, an application in FORM GST DRC-03A cannot be filed by the said person in respect of the said payment. Deemed to be conclude proceedings [ Where the person chargeable with tax makes payment of tax and interest section 73(8) or, as the case may be, tax, interest and penalty under section 74(8) within thirty days of the service of a notice under rule 142(1) , or where the person concerned makes payment of the amount referred to in section 129(1) within seven days of the notice issued under Section 129(3) but before the issuance of adjudicating order; he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice . Where the person chargeable with tax makes payment of tax and interest under section 73(8) or under section 74A(8)(ii), as the case may be, or tax, interest and penalty under section 74(8) or section 74A(9)(ii), as the case may be, within the period specified therein, or where the person concerned makes payment of the amount referred to in section 129(1) within seven days of the notice issued under sub-section (3) of that Section but before the issuance of order under the said sub-section (3), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an intimation in FORM GST DRC-05 concluding the proceedings in respect of the said notice. substituted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024 ] [ Rule 142(3) ] Reply of Notice and summery uploaded electronically The representation referred to in section 73(9) or section 74(9) [ or section 74A(6) (inserted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024) ] or section 76(3) or the reply to any notice i ssued under any section whose summary has been uploaded electronically in FORM GST DRC-01 under rule 142(1) shall be furnished in FORM GST DRC-06 . [ Rule 142(4) ] A summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 [ or section 74A (inserted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024) ] or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC-07 , specifying therein the amount of tax, interest and penalty, as the case may be, payable by the person concerned. [ Rule 142(5) ] The order referred to in rule 142(5) shall be treated as the notice for recovery. [ Rule 142(6) ] Rectification of order issued under section 73 or section 74 Where a rectification of the order has been passed in accordance with the provisions of section 161 or where an order uploaded on the system has been withdrawn, a summary of the rectification order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST DRC-08 . [ Rule 142(7) ] Relevant Circulars Notification issued by CBIC 1. Whos is empower to issue SCN and adjudicating order under sections 73 and 74 [Circular no. 03/03/2018 dated 05th July 2017] Superintendents of Central Tax shall also be empowered to issue show cause notices and orders under sections 73 or section 74 of the CGST Act. All officers up to the rank of Additional/Joint Commissioner of Central Tax are assigned as the proper officer for issuance of show cause notices and orders under sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of sections 73 and 74 of the CGST Act. 2. Fixing monetary limits for issuance of show cause notice by different level of officers [ [Circular No. 31/05/2018 - GST dated 9th February 2018] ] Whereas, for optimal distribution of work relating to the issuance of show cause notices and orders under sections 73 and section 74 of the CGST Act and also under the IGST Act, Fixing the monetary limits for different levels of officers of central tax need to be prescribed. Sl. No. Officer of Central Tax Monetary limit of the amount of central tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act Monetary limit of the amount of integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to matters in relation to integrated tax vide section 20 of the IGST Act Monetary limit of the amount of central tax and integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax and integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to integrated tax vide section 20 of the IGST Act (1) (2) (3) (4) (5) 1. Superintendent of Central Tax Not exceeding ₹ 10 lakhs Not exceeding ₹ 20 lakhs Not exceeding ₹ 20 lakhs 2. Deputy or Assistant Commissioner of Central Tax Above ₹ 10 lakhs and not exceeding ₹ 1 crore Above ₹ 20 lakhs and not exceeding ₹ 2 crores Above ₹ 20 lakhs and not exceeding ₹ 2 crores 3. Additional or Joint Commissioner of Central Tax Above ₹ 1 crore without any limit Above ₹ 2 crores without any limit Above ₹ 2 crores without any limit