UNDERSTANDING SECTIONS 73 AND 74 OF THE CGST/IGST ACT 2017

Section 73 deals with cases where a taxpayer has not paid the tax or short-paid the tax, but has not fraudulently evaded it.

In such cases, the tax authorities can issue a notice to the taxpayer, demanding payment of the tax along with interest.

The taxpayer can make the payment within 30 days of receiving the notice, failing which the tax authorities can initiate recovery proceedings.

Section 74 deals with cases where a taxpayer has fraudulently evaded tax or taken input tax credit without actual receipt of goods or services.

In such cases, the tax authorities can issue a notice to the taxpayer, demanding payment of the tax along with a penalty.

The penalty can be up to 100% of the tax amount, and the taxpayer can make the payment within 30 days of receiving the notice.

If the taxpayer fails to make the payment within 30 days, the tax authorities can initiate recovery proceedings.