Time Limit for SCN & Order under GST for FY 2018-19

Time limit for issuance of SCN or adjudication order for 2018-19 under Section 74 of GST.

The time permit set out under GST to issue show cause notice (‘SCN’) is mandatory and any violation of that time period cannot be condoned, and would render the SCN otiose. It is settled law that periods of limitation are mandatory and not orders can be passed beyond the periods set out in the GST Act. Orders cannot be passed beyond the period set out in the Act. [M/s. The The Cotton Corporation of India vs. Assistant Commissioner (ST) (Audit) (FAC) & ors. in W.P. No. 1463 of 2025, judgment dated 05.02.2025 of High Court of Andhra Pradesh at Amarvati].

 Time Limit for issuance of SCN [Section 73(2) of the CGST Act, 2017].

 Section 73(10) of the CGST Act, stipulates that the assessment order, in relation to any assessment year, would have to be issued within three years from the due date for furnishing of annual return for the said financial year. Section 73(2) of the CGST Act stipulates that the notice under subsection (1) which initiates the assessment proceedings, would have to be issued at least three months prior to the time limit specified in sub-section (10) for issuance of the order. The date of issuance of SCN is depend on the due date of passing of the order under section 73(10). The proper officer shall issue SCN at least 3 months prior to the time limit of 3 years for issuance of order i.e.

• Before completion of 3 years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to, or
• Within 3 years from the date of erroneous refund, as the case may be.

Thus, the time-limit for issuance of SCN in non-fraud or non – suppression cases is 2 years and 9 months from the due date of filing Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund.

Checking the validity of SCN(s)- ‘Limitation Date’

 Section 73(2) of the CGST Act, 2017 specifies that a SCN should be issued at least three months prior to the issuance of an adjudication order. CBIC in exercise of its powers u/s 168A of the CGST Act, 2017 vide notification no. 09/2023-CT dated 31.03.2023,has extended the time limit for issuance of adjudication order for FY 2017-18, 2018-19 and 2019-20 pertaining to non-fraud cases under 73(9) of CGST Act, 2017. However, the time limit has been further extended by notification no.56/2023-CT is on 28/12/2023 for the FY 2018-19 and FY 2019-20. Now summaries position may be read as under for the following years-

* Please note that for FY 2020-21 the deadline to issue a notice under section 73(2) of the CGST Act should be 28.11.2024 [M/s. The Cotton Corporation of India vs. Assistant Commissioner (ST) (Audit) (FAC) & ors. in W.P. No. 1463 of 2025, judgment dated 05.02.2025 of High Court of Andhra Pradesh at Amarvati].

Time Limit for issuance of SCN [Section 74(2) of the CGST Act, 2017].

 Section 74(10) of the CGST Act, stipulates that the assessment order, in relation to any assessment year, would have to be issued within five years from the due date for furnishing of annual return for the said financial year. Section 74(2) of the CGST Act stipulates that the notice under subsection (1) which initiates the assessment proceedings, would have to be issued at least six months prior to the time limit specified in sub-section (10) for issuance of the order. The date of issuance of SCN is depend on the due date of passing of the order under section 74(10). The proper officer shall issue SCN at least 6 months prior to the time limit of 5 years for issuance of order i.e.

• Before completion of 5 years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to, or
• Within 5 years from the date of erroneous refund, as the case may be.

Thus, the time-limit for issuance of SCN is 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund.

 Checking the validity of SCN(s)- ‘Limitation Date’

Section 74(2) of the CGST Act, 2017 specifies that a SCN should be issued at least six months prior to the issuance of an adjudication order. Moreover, the time-limit for issuance of SCN is 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund. The original/extended due date of filing of Annual Return are as under-

In view of the extended date of filing of Annual Return, the time lime to issue SCN and adjudication order under section 74 are as under-

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