The Government, vide Notification No. 09/2023-Central Tax, dated 31st March, 2023, has extended the time limit specified under sub-section (10) of section 73 for issuance of order under sub-section (9) of section 73 of the Central Goods and Services Tax Act, 2017 (the CGST Act, 2017), 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 the 31st day of December, 2023.
- for the financial year 2018-19, up to the 31st day of March, 2023.
- for the financial year 2019-20, up to the 31st day of June, 2024.
[Please note that the said notification was issued in partial modification of the notifications of the Government of India, Ministry of Finance (Department of Revenue), No.35/2020 Central Tax, dated the 3rd April, 2020 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 235 (E), dated the 3rd April, 2020 and No.14/2021-Central Tax, dated the 1st May, 2021 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i), vide number G.S.R.310 (E),dated the 1st May, 2021 and No.13/2022-Central Tax, dated the 5th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i), vide number G.S.R. 516 (E), dated the 5th July, 2022].
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As sub-section (2) of Section 73 of the CGST Act, 2017 provides that “the proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order.” Accordingly, the time limit for issuing SCN under section 73(1) i.e., three months before issuance of the time limit for issuance of order, was extended automatically and SCN for the FY-2017-18 could be issued upto 30th September, 2023.
It is pertinent to mention that time for issuance of SCN also stands extended if the time period for issuance of order is extended [Pappachan Chakkiath v. Assistant Commissioner, CTO North Paravur – [2023] (Kerala) HC]. The Hon’ble High Court noted that it is clear from the reading of sub-section (2) of Section 73 that, the show cause notice to be issued at least three months prior to the time limit specified in sub-section (10) for issuance of order. When the time limit for issuance order under sub-section (10) of Section 73 for the financial year 2017-18 has been extended upto 30.09.2023 (now 31.12.2023), the only interpretation that can be placed on the provisions of sub-section (2) of Section 73 is that, the show cause notice can also be issued with reference to the date 30.09.2023 and not with reference to any other date.
[Please also refer earlier article dated 29th October, 2022 on taxguru as “Time Limit for issue of demand order under Section 73(10) of CGST Act, 2017 for Financial Year 2017-18 dated 29th October, 2022”].
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U/S 73 of CGST act, the last date of issuace of order is 31/01/2024. As per Rule 142 DRC07 is to be uploaded in portal.
My questions are
1)whether order u/s 73 is mandatorily be uploaded in portal? If so what is the last date for 2017-18?
2) Whether there is any time limit by which DRC07 for 2017-18 is to be mandatorily uploaded ?
3) What is the legal implication in case order u/s 73 for 2017-18 is mannually issued on 31/12/2023 and DRC07 for the same is uploaded in portal on 23/02/2024
4) Whether order u/s 73 and DRC07 must be issued together or whether DTC07 can be issued after a gap of some days of issuance of order u/73