Time limit extended for issuance of SCN and passing of order in non-fraud cases for FY 2017 to 2020

Background:

The GST Council’s in its 47th meeting recommended to extend limitation under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for the Financial Year (FY) 2017-18 for issuance of order in respect of other demands linked with due date of annual return till September 30, 2023.

Subsequently, the CBIC vide Notification No. 13/2022- Central Tax dated July 05, 2022 extended the time limit specified under Section 73(10) of the CGST Act for issuance of order under Section 73(9) of the CGST Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized, in respect of a tax period for the financial year 2017-18, up to September 30, 2023.

Notification:

Now, the CBIC vide Notification No. 09/2023–Central Tax dated March 31, 2023 has extended the time limit specified under Section 73(10) of the CGST Act for issuance of order under Section 73(9) of the CGST Act, for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, in respect of a tax period for FY 2017-18, 2018-19 and 2019-20.

The time limit for passing orders under Section 73 of the CGST Act, has been extended in a following manner:

Hence, time limit for issuance of the Show Cause Notice (“SCN”) under Section 73 would be at least three months prior to the time limit specified in sub-section (10) of Section 73 of the CGST Act for issuance of order, in a following manner:

The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009691/ENG/Notifications