Limitation periods are the most critical dates in GST assessment proceedings. A demand issued beyond the limitation period is void. Understanding the deadlines for show cause notice issuance and order passing is essential for every taxpayer.
This article provides a comprehensive guide to GST assessment timelines.
Section 73 (Non-Fraud)
- SCN issuance: At least three months before the order deadline.
- Order deadline: Three years from the due date for filing the annual return for the relevant financial year.
Section 74 (Fraud)
- SCN issuance: At least six months before the order deadline.
- Order deadline: Five years from the due date for filing the annual return.
Section 62 (Non-Filers)
- Order deadline: Five years from the due date for filing the annual return.
Section 63 (Unregistered Persons)
- Order deadline: Five years from the due date for filing the annual return.
Section 64 (Summary Assessment)
- No specified limitation; urgent action required.
The Triggering Event
The limitation period runs from the due date for filing the annual return for the relevant financial year. For FY 2017-18, this was 31st December 2018.
Recent Judicial Developments
The Supreme Court has ruled that the five-year limitation under Section 74 must be strictly construed. The Karnataka High Court has quashed consolidated SCNs clubbing multiple financial years.
Practical Steps
- Maintain a calendar of annual return due dates for each financial year.
- Verify the limitation period for every demand notice received.
- Challenge time-barred notices and orders.
- Track the order deadline and follow up on pending assessments.
Conclusion
Limitation is a substantive right. Taxpayers must verify whether demand notices are issued within the prescribed time and challenge any time-barred proceedings.
At Anuj Desai & Associates, we provide expert representation services for GST assessments, including limitation-based challenges. Our team can help you protect your rights.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.