Budget 2024: Section 74A introduced for GST Adjudication merging Sections 73 and 74

Budget 2024: Section 74A introduced for GST Adjudication merging Sections 73 and 74

The Union Budget 2024 was presented in the Parliament by FM Nirmala Sitharaman on 23rd July 2024. Various proposed changes have been considered and amended by the Finance Minister.

GST Adjudication – 73 and 74 Merged in New Introduced Section 74A w.e.f FY 24-25

Clause 134 of the Bill is inserted Section 74A in the CGST Act, so as to provide for the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to the Financial Year 2024-25 onwards.

Particulars	FY 2023-24		FY 2024-25
	Normal	Fraud	Same timelines for Fraud & Non-Fraud cases
Notice	33 months from Due Date of Annual Return	54 months from Due Date of Annual Return	42 months from Due Date of Annual Return
Order	36 months from Due Date of Annual Return	60 months from Due Date of Annual Return	12 Months from due date of Notice

It also provides for the same limitation period for issuing demand notices and orders in respect of demands from the Financial Year 2024-25 onwards, irrespective of whether the charges of fraud, wilful misstatement, or suppression of facts are invoked or not while keeping a higher penalty, for cases involving fraud, wilful misstatement, or suppression of facts.