New Provisions for Determination of Tax Not Paid, ShortPaid or Erroneously Refunded or Input Tax Credit Wrongly Availed or Utilized—CA. Satyadev Purohit

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The Tax Publishers GST--Determination of Tax Not Paid, Short-Paid, Etc. New Provisions for Determination of Tax Not Paid, Short-Paid or Erroneously Refunded or Input Tax Credit Wrongly Availed or Utilized CA. Satyadev Purohit The learned author seeks to make a comparative study of new provisions for determination of tax not paid, short-paid or erroneously refunded or input tax credit wrongly availed or utilised, as introduced via section 74A by the Finance (No. 2) Act, 2024 along with a comparative study with the provisions of section 73 and section 74 of the Act. 1. Introduction The Finance (No. 2) Act, 2024 has introduced section 74A under the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") dealing with new provisions for determination of tax not paid, short-paid, erroneously refunded or input tax credit wrongly availed or utilised, for determination of tax pertaining to the period for the financial year 2024-25 and onwards. At the same time, sunset provisions have been inserted under section 73 as well as section 74 of the Act providing that the provisions of section 73 and 74 shall applicable for determination of tax pertaining to the period upto Financial Year 2023-24 only. The main difference between the existing provisions and the new provisions is that the concept of non-payment, short-payment, erroneous refund or wrong availment or utilisation of input tax credit by reason of fraud, mis-statement or suppression of facts is no longer available under the new provisions. Now any type of non-payment, short-payment, erroneous refund or wrong availment or utilisation of input tax credit whether be for any reason other than fraud, mis-statement of suppression of facts or for the said reasons would be dealt with in accordance with the provisions of section 74A of the Act. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Determination of Tax Not Paid, Short-Paid, Etc.

New Provisions for Determination of Tax Not Paid, Short-Paid or Erroneously Refunded or Input Tax Credit Wrongly Availed or Utilized

CA. Satyadev Purohit

The learned author seeks to make a comparative study of new provisions for determination of tax not paid, short-paid or erroneously refunded or input tax credit wrongly availed or utilised, as introduced via section 74A by the Finance (No. 2) Act, 2024 along with a comparative study with the provisions of section 73 and section 74 of the Act.

1. Introduction

The Finance (No. 2) Act, 2024 has introduced section 74A under the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") dealing with new provisions for determination of tax not paid, short-paid, erroneously refunded or input tax credit wrongly availed or utilised, for determination of tax pertaining to the period for the financial year 2024-25 and onwards.

At the same time, sunset provisions have been inserted under section 73 as well as section 74 of the Act providing that the provisions of section 73 and 74 shall applicable for determination of tax pertaining to the period upto Financial Year 2023-24 only.

The main difference between the existing provisions and the new provisions is that the concept of non-payment, short-payment, erroneous refund or wrong availment or utilisation of input tax credit by reason of fraud, mis-statement or suppression of facts is no longer available under the new provisions. Now any type of non-payment, short-payment, erroneous refund or wrong availment or utilisation of input tax credit whether be for any reason other than fraud, mis-statement of suppression of facts or for the said reasons would be dealt with in accordance with the provisions of section 74A of the Act.