Budget 2024: No GST demand notice to be issued beyond 42 months from the due date of filing annual return; Know how it will help you
GST demand notices and orders has been streamlined in Budget 2024. Budget 2024 introduced a new section 74A in the CGST Act. Under the new regulations, a GST officer is permitted to issue a Goods and Services Tax (GST) demand notice only within 42 months from the due date of filing the GST annual return. Additionally, GST demand orders must be issued within 12 months from the date of the GST demand notice.
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«This amendment changes the time limit for issuing assessment notices to 42 months from the due date of the annual return for the financial year, and the same shall apply uniformly across all types of taxpayers. For example, FY 2024-25, with the annual return due on 31st December 2025, the deadline for issuing GST demand notices will be 30th June 2029,» says Siddharth Surana, Director, RSM India.
Impact of this amendment for GST registered individuals and others
This proposed amendment establishes a uniform timeframe for issuing GST demand notices and orders, regardless of whether the case involves fraud or not. You now know the specific deadline for receiving a GST demand notice regardless of whether it was a section 73 or 74 notice.
According to Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India, «As a consequence of this amendment, the common time limits for issuing notices are prescribed, regardless of whether the demand arises due
