The GST Department faces strict deadlines this year for issuing Show Cause Notices (SCNs) on older tax periods. Under Section 74, notices for FY 2020-21 fraud or suppression cases must be issued by 31st August 2026. Under Section 73, notices for FY 2022-23 normal cases must be issued by 30th September 2026. Once these dates pass, the department generally loses the power to raise a demand for that year, so businesses should track their GST portal and registered email closely during this window.
Key Deadlines at a Glance
GST Provision | Applies To | Financial Year | Last Date for SCN |
Section 74 | Fraud, suppression, or wilful misstatement | FY 2020-21 | 31 August 2026 |
Section 73 | Normal cases, no fraud alleged | FY 2022-23 | 30 September 2026 |
What Section 73 and Section 74 Actually Cover
Sections 73 and 74 of the CGST Act, 2017 give tax officers the power to raise a demand when GST has been short paid, not paid, or wrongly refunded, or when input tax credit has been wrongly claimed. The section that applies depends on why the shortfall happened.
Section 73 – Normal Cases
Section 73 covers cases where there is no fraud, suppression of facts, or wilful misstatement involved. This is the more common route and typically results in lower penalties if the taxpayer pays up before the notice stage.
Section 74 – Fraud and Suppression Cases
Section 74 applies when the department believes tax was evaded through fraud, suppression of facts, or wilful misstatement. Because the allegations are more serious, this section carries a longer limitation period and steeper penalties.
How the Deadlines Are Calculated
Both sections tie the SCN deadline to the due date for filing the GST annual return (GSTR-9) for the relevant financial year, not to the financial year itself. The law works backward from the order deadline:
- Section 73: the final order must be passed within 3 years of the annual return due date, and the SCN must be issued at least 3 months before that order deadline.
- Section 74: the final order must be passed within 5 years of the annual return due date, and the SCN must be issued at least 6 months before that order deadline.
Because annual return due dates for FY 2020-21 were extended through CBIC notifications during the pandemic recovery period, the Section 74 SCN deadline for that year lands on 31 August 2026. For FY 2022-23, where no such extension applied, the standard 3-year Section 73 timeline places the SCN deadline at 30 September 2026.
What Happens After the Deadline Passes
Once the SCN deadline for a financial year lapses, the department is generally barred from issuing a fresh notice for that year. This is subject to the specific provisions of the CGST Act and any further extensions the government may notify under Section 168A, so the cut-off is not always absolute. Businesses should not assume the matter is closed until they have confirmed there is no notice pending against them.
Practical Tips for Businesses
- Check the GST portal regularly, including the ‘View Notices and Orders’ and ‘Additional Notices’ tabs, since some communications do not trigger an email alert.
- Monitor the registered email ID and mobile number linked to your GSTIN through August and September 2026.
- Reconcile GSTR-9 and GSTR-9C filings for FY 2020-21 and FY 2022-23 now, so any discrepancy is identified before the department raises it.
- Keep supporting documents such as invoices, e-way bills, and reconciliation statements for these years readily accessible.
- Share any notice with your tax consultant immediately, since replies to Section 73 and 74 notices are time-bound and missing a reply date can weaken your defence.
Conclusion
The GST Department has a limited window left to raise demands for FY 2020-21 fraud cases and FY 2022-23 normal cases, with SCN deadlines of 31 August 2026 and 30 September 2026 respectively. Businesses should use the coming weeks to reconcile their returns, watch the GST portal closely, and act quickly if any notice arrives. Staying alert now is far easier than contesting a demand later, so make this a priority before the deadlines close.
Frequently Asked Questions
What is a Show Cause Notice under GST?
A Show Cause Notice is a formal communication from the GST Department asking a taxpayer to explain a shortfall in tax payment or an incorrect input tax credit claim before a demand order is passed.
Can the department issue an SCN after the deadline?
Generally no, once the statutory limitation period under Section 73 or 74 expires. However, the government can extend timelines under Section 168A of the CGST Act during exceptional circumstances, so it is worth confirming the current position with a tax professional.
What should I do if I receive a notice?
Do not ignore it. Note the reply deadline mentioned in the notice, gather the relevant records, and consult a GST practitioner promptly to prepare an appropriate response.
Is FY 2023-24 covered by Section 73 or 74?
FY 2023-24 is the last year covered under Sections 73 and 74. From FY 2024-25 onward, GST demand cases are governed by the newly introduced Section 74A, which merges the earlier fraud and non-fraud provisions into a single timeline.
