CBIC Notifies Insertion of Section 74A in CGST Act, Effective from 1st Nov 2024

The CBIC has notified the insertion of Section 74A in the CGST Act, effective November 1, 2024. This new section addresses the recovery of tax not paid or short paid due to fraud or willful misstatement. It allows for the recovery of such tax without issuing a show cause notice if the taxpayer voluntarily discloses the liability and pays the tax along with interest and a reduced penalty. This provision aims to encourage voluntary compliance and reduce litigation by providing a mechanism for taxpayers to rectify their mistakes without facing severe penalties.