What is GSTR-3B and when is it due?

GSTR-3B is a monthly self-declared summary GST return. For regular taxpayers, it is due by the 20th of the following month. Late filing attracts ₹50/day late fee (₹25 CGST + ₹25 SGST), capped at ₹5,000.

How do I reply to a DRC-01 GST notice?

DRC-01 is a show-cause notice for tax demand. Log in to GST portal, go to Services > User Services > View Additional Notices, select the notice and file a reply within 30 days — either agreeing and paying, or disputing with supporting documents.

What is the late fee for filing GSTR-1 late?

Late fee for GSTR-1 is ₹50/day (₹25 CGST + ₹25 SGST). For nil returns it is ₹20/day. Maximum cap is ₹10,000 per return. GSTR-1 is due by the 11th of each month for monthly filers.

Can I claim ITC on hotel and restaurant bills?

ITC on restaurant food and beverages is blocked under Section 17(5) CGST Act — not claimable. However, ITC on hotel accommodation is allowed if used for business purposes and the hotel provides a GST invoice with your GSTIN.

What is the GST registration threshold in India?

GST registration is mandatory if annual aggregate turnover exceeds ₹40 lakhs for goods (₹20 lakhs for special category states) or ₹20 lakhs for services (₹10 lakhs for special category states). E-commerce sellers must register regardless of turnover.

Section 74A GST Notice: Complete Guide for FY 2024-25

sai krishna
Jun 7
2 min read

Section 74A was introduced by the Finance Act 2024 and applies to tax periods from FY 2024-25 onwards. This replaces the earlier framework under Sections 73 and 74 of the CGST Act.

Key Changes Under Section 74A

The most important change is the removal of the fraud/non-fraud distinction at the SCN stage. Under the old framework, tax officers had to determine at the notice stage whether the case involved fraud or wilful misstatement. Under Section 74A, this determination happens only at the adjudication (speaking order) stage.

Monetary Limits for Proper Officers (CBIC Circular 254/11/2025-GST)

For CGST jurisdiction: - Superintendent: Up to ₹10 lakhs - Deputy/Assistant Commissioner: ₹10 lakhs to ₹1 crore - Additional/Joint Commissioner: Above ₹1 crore

Note: IGST limits are double the CGST limits. Use combined CGST+IGST amount to determine jurisdiction. Penalty amounts are excluded from this calculation.

Time Limits Under Section 74A

The notice must be issued within 42 months from the due date of the annual return for the relevant financial year. This is a single unified time limit regardless of whether fraud is alleged.

How to Respond to a Section 74A Notice

1. Read the notice carefully — identify the specific demand, period, and legal ground 2. Gather supporting documents: GSTR-1, GSTR-3B, purchase invoices, e-way bills 3. Calculate your actual liability independently 4. If you agree: pay under DRC-03 and file reply acknowledging payment 5. If you disagree: file a detailed reply with legal grounds within the stipulated time (usually 30 days)

Common Grounds Raised in Section 74A Notices

- ITC claimed in GSTR-3B exceeding GSTR-2B auto-populated credit - ITC availed from cancelled/suspended supplier GSTINs - Rule 86B violation (insufficient cash payment in ECL) - Mismatch between outward supplies in GSTR-1 vs GSTR-3B - RCM liability not discharged on GTA, legal, or rent services

Disclaimer: Consult your CA for case-specific advice. This article is for general information only.