TIME LIMIT FOR ISSUE NOTICE U/S 122, Goods and Services Tax - GST

[ajay chharia]

SIR,

IS THERE ANY TIME LIMIT FOR ISSUING NOTICE U/S 122 OF THE CGST ACT,2017

Posts / Replies

[Sadanand Bulbule]

There is no time limit fixed to levy penalty under Section 122. However incontrovertible evidence is required to be placed on record to allege the commission of specific offence before issuing SCN. And this alone decides the precise amount of penalty to be levied for the gravity of each offence. Further there is immunity from levying penalty under Section 75(13) and explanation-ii appended to Section 74 and Section 74A.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

                           Sir,   In a few words, your message is loud and clear.

[Shilpi Jain]

Penalty under law needs to be demanded by issuance of SCN u/s 73 or 74. So the time lines mentioned in those sections should apply for penalty under 122 also.

[Shilpi Jain]

Logically department cannot have unlimited time to demand anything. Though an exception would be any amount collected as GST and not remitted. 

[Sadanand Bulbule]

As already mentioned, once the proceedings under Section 73, 74 and 74A are concluded, no penalty could be levied under Section 122 in view of the specific embargo under Section 75(13) on the same taxpayer. However Section 122 can be enlarged to other offences subject to other governing provisions.