The Goods and Service Tax (GST) Council has recommended a common time limit for the issuance of demand notices and orders

The Union Finance Minister Nirmala Sitharaman presided over the 53rd meeting of the GST Council today (22nd June 2024) at New Delhi with Revenue Secretary and CBIC Chairman. The meeting commenced at 2:00 PM, however, the Finance Minister addressed the public in the evening. Amendments in Section 73 and Section 74 of CGST Act, 2017 and insertion of a new Section 74A in CGST Act, to provide for common time limit for issuance of demand notices and orders  irrespective of whether case involves fraud, suppression, willful misstatement etc., or not: Presently,  there is a different time limit for issuing demand notices and demand orders, in cases where charges of fraud,  suppression, willful misstatement etc., are not involved, and in cases where those charges are involved. In order to simplify the implementation of those provisions, the GST Council recommended to provide for a common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, in cases involving charges of fraud or willful misstatement and not involving the charges of fraud or willful misstatement etc. Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along with interest, has been recommended to be increased from 30 days to 60 days. The proper officer is required to issue the show-cause notice 3 months before the time limit. The maximum time limit for the order of payment is 3 years from the due date for filing of annual return for the year to which the amount relates.