GENERAL PROVISIONS REGARDING DETERMINATION OF TAX - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

17. GENERAL PROVISIONS REGARDING DETERMINATION OF TAX 17.1. Section 75 of the CGST Act, 2017 deals with the general provisions regarding the determination of tax. 17.2. When Appellate Court stays the issuance of the show cause notice or order by the officer, for computing the limitation period under Section 73(2) and Section 73(10) or Section 74(2) and Section 74(10) of the CGST Act, 2017, the period till the issuance of notice or order under stay shall be excluded. 17.3. When the charges under Section 74(1) of CGST Act, 2017 relating to willful misstatement or fraud or suppression of facts to escape the tax is not established against the person to whom show cause notice has been issued by the Appellate Authority or Tribunal of the Court, the Proper Officer shall determine the tax payable by such person, deeming the notice as a show cause notice under Section 73(1) of CGST Act, 2017. 17.4. When Appellate Authority, Court or Tribunal passes any direction and an order is required to be passed in relation to that direction, then such order shall be passed within two years from the date of communication of such direction. 17.5. When any adverse decision is being contemplated against the person liable for tax or penalty and such person requests in writing that he should be heard, the authority may provide him with an opportunity of being heard. Further, if he shows sufficient cause, his hearing may be adjourned or time may be granted to him. 17.6. The amount of tax, penalty and interest determined in the Adjudication order shall not exceed the amount demanded in the show cause notice. Moreover, the grounds in the decision or order and the grounds in the show cause notice must be the same. 17.7. The summary of the order issued under Section 75 of the CGST Act, 2017 shall be uploaded electronically in FORM GST DRC-07 . 17.8. Interest on the short paid/not paid tax shall be payable by the person whether or not specified in the order determining the tax liability. 17.9. If the Adjudication order is not issued within three years, as provided under Section 73(10) or five years as provided under Section 74(10) of the CGST Act, 2017, then the proceeding shall be deemed to be concluded. 17.10. Where any amount of tax assessed in a return furnished under Section 39 of the CGST Act, 2017 by the taxpayer remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered in the manner prescribed under Section 79 of CGST Act, 2017. 17.11. It is pertinent to mention here that penalty under Section 73(9) and 74(9) of the CGST Act, 2017, as applicable, is liable to be imposed in cases where determination of tax not paid or short paid has been ordered. Therefore, if penalty has been imposed on a person under Section 73 or Section 74 of the CGST Act, 2017 then no penalty for the same act shall be imposed on that person under any other provision of CGST Act, 2017. 17.12. Clarification regarding applicability of the provisions of Section 75(2) of the CGST Act, 2017 and its effect on limitation has been provided in CBIC Circular No. 185/17/2022-GST, dated 27.12.2022