Section 73, Central Goods and Services Tax Act, 2017 [S10-8EV]
As at 1 October 2023. In force from 1 July 2017 by Notification No. 9/2017-Central Tax, dated 28-6-2017 [N10-27X].
73. Determination of tax , pertai d or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts.—
(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.
(2) 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.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under subsection (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.
**(10) The proper officer shall issue the order under sub-section (9) within three 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 utilised relates to or within three years from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.
Defined terms in this text (8)
act: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (2) "act", used with reference to an offence or a civil wrong, shall include a series of acts, and words which refer to acts done extend also to illegal omissions;
act: 363 more definitions.
financial year: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (21) "financial year" shall mean the year commencing on the first day of April; (22) a thing shall be deemed to be done in "good faith" where it is in fact done honesty, whether it is done negligently or not;
financial year: 22 more definitions.
input tax credit: Section 2(63), Central Goods and Services Tax Act, 2017: "input tax credit" means the credit of input tax;
month: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "month" shall mean a month reckoned according to the British calendar
person: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "person" shall include any company or association or body of individuals, whether incorporated or not
person: 1 more definition.
section: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (54) "section" shall mean a section of the Act or Regulation in which the word occurs;
section: 363 more definitions.
sub-section: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (61) "sub-section" shall mean a sub-section of the section in which the word occurs;
year: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "year" shall mean a year reckoned according to the British calendar
Made under this section, or naming it (5)
Circular No. 124/43/2019-GST [C10-4C1], 18 November 2019, in force. The text contains "Section 73 of the said Act".
Notification No. 09/2023-Central Tax [N10-ZCG], 31 March 2023, in force. The text contains "sub-section (9) of section 73 of the said Act".
Notification No. 13/2022-Central Tax [N10-WVQ], 5 July 2022, in force. The text contains "sub-section (10) of section 73 of the said Act".
Notification No. 21/2024-Central Tax [N11-3PP], 8 October 2024, in force. The text contains "sub-section (1) of section 73 of the said Act".
Notification No. 56/2023-Central Tax [N11-2HW], 28 December 2023, in force. The text contains "sub-section (9) of section 73 of the said Act".
Cited by (20)
Section 10, Central Goods and Services Tax Act, 2017 [S10-698], 12 April 2017, Band A. "section 73".
Section 104, Central Goods and Services Tax Act, 2017 [S10-9H4], 12 April 2017, Band A. "section 73".
Section 107, Central Goods and Services Tax Act, 2017 [S10-9ME], 12 April 2017, Band A. "section 73".
Section 127, Central Goods and Services Tax Act, 2017 [S10-AAV], 12 April 2017, Band A. "section 73".
Section 128A, Central Goods and Services Tax Act, 2017 [S10-ACQ], 12 April 2017, Band A. "section 73".
Section 21, Central Goods and Services Tax Act, 2017 [S10-6NN], 12 April 2017, Band A. "section 73".
Section 35, Central Goods and Services Tax Act, 2017 [S10-74P], 12 April 2017, Band A. "section 73".
Section 49, Central Goods and Services Tax Act, 2017 [S10-7KX], 12 April 2017, Band A. "section 73".
Section 50, Central Goods and Services Tax Act, 2017 [S10-7PQ], 12 April 2017, Band A. "section 73".
Section 51, Central Goods and Services Tax Act, 2017 [S10-7QN], 12 April 2017, Band A. "section 73".
Section 61, Central Goods and Services Tax Act, 2017 [S10-823], 12 April 2017, Band A. "section 73".
Section 62, Central Goods and Services Tax Act, 2017 [S10-831], 12 April 2017, Band A. "section 73".
Section 63, Central Goods and Services Tax Act, 2017 [S10-84F], 12 April 2017, Band A. "section 73".
Section 64, Central Goods and Services Tax Act, 2017 [S10-85D], 12 April 2017, Band A. "section 73".
Section 65, Central Goods and Services Tax Act, 2017 [S10-86B], 12 April 2017, Band A. "section 73".
Section 66, Central Goods and Services Tax Act, 2017 [S10-879], 12 April 2017, Band A. "section 73".
Section 74, Central Goods and Services Tax Act, 2017 [S10-8FS], 12 April 2017, Band A. "section 73".
Section 75, Central Goods and Services Tax Act, 2017 [S10-8H0], 12 April 2017, Band A. "section 73".
Rule 142, Central Goods and Services Tax Rules, 2017 [S10-JK3], 19 June 2017, Band A. "section 73".
Rule 88B, Central Goods and Services Tax Rules, 2017 [S10-G8R], 19 June 2017, Band A. "section 73".
Not held (0)
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Duties published under this section (0)
none