“Stay informed on CGST Act 2017: Extension of Time Limits for FY 2018-19 & 2019-20 Demand Orders. Explore implications, automatic extension for SCN, and legal clarifications. Get insights on the recent government notification and its impact. For detailed information, refer to our comprehensive article. Disclaimer: This content is for informational and educational purposes, not legal advice. For queries, consult a legal professional.”

The Government vide Notification No. 56/2023-Central Tax dated 28/12/2023 has further extended the time limit for issuance of the order u/s 73(9) of the CGST Act, 2017 for recovery of tax not paid or short paid or of input tax credit wrongly availed or utilized for FY 2018-19 & 2019-20 as under:

Financial Year Extended Limitation Vide Notification No. Further Extended Vide Notification No.
2017-18 31st December, 2023 Notification No. 09/2023-Central Tax, dated 31st March, 2023 Not Extended NA
2018-19 31st March, 2024 Notification No. 09/2023-Central Tax, dated 31st March, 2023 30th April, 2024 Notification No. 56/2023-Central Tax, dated 28th  December, 2023
2019-20 30th June, 2024 Notification No. 09/2023-Central Tax, dated 31st March, 2023 31st August, 2024 Notification No. 56/2023-Central Tax, dated 28th  December, 2023

Extension of Time Limits for GST Proceedings: FY 2017-18 to FY 2019-20

In a recent development, the Government, through Notification No. 09/2023-Central Tax, dated 31st March, 2023, has extended the time limits specified under sub-section (10) of section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017) for the issuance of orders under sub-section (9) of section 73. This extension is specifically related to the recovery of tax not paid or short-paid, or of input tax credit wrongly availed or utilized for the financial years 2017-18, 2018-19, and 2019-20.

  • 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, 2024.
  • for the financial year 2019-20, up to the 30th day of June, 2024.

Extension and Implications:

i. Section 73(10) Time Limits: The extension applies to the time limit specified under section 73(10) for the issuance of orders related to the recovery of taxes or input tax credit.

ii. Automatic Extension for SCN (Show Cause Notice):

  • According to sub-section (2) of Section 73, the proper officer must issue a show cause notice (SCN) at least three months before the time limit specified in sub-section (10) for the issuance of orders.
  • The extension of the time limit for issuing orders automatically extends the time for issuing the SCN.

iii. Interpretation and Legal Clarification:

  • The interpretation of the provisions of sub-section (2) of Section 73 is crucial. It clarifies that the show cause notice can be issued with reference to the extended date, i.e., 30th September 2023 (now 31st December 2023), and not any other date.
  • The legal standpoint is supported by the decision in the case of [Pappachan Chakkiath v. Assistant Commissioner, CTO North Paravur – [2023] (Kerala) HC], where the Kerala High Court emphasized the linkage between the time limit for issuing orders and the issuance of show cause notices.

[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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Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the author whatsoever and the content is to be used strictly for informational and educational purposes. While due care has been taken in preparing this article, certain mistakes and omissions may creep in. the author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.

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