GST Council recommends Common Time Limit for Issuance of Demand Notices and Orders

The 53rd GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman recommended amendments to Section 73 and Section 74 of the CGST Act, 2017, and the insertion of a new Section 74A. These changes aim to provide a common time limit for issuing demand notices and orders, irrespective of whether cases involve fraud, suppression, willful misstatement, etc. Currently, different time limits exist for issuing demand notices and orders based on the nature of the charges. \r

The recommendation seeks to simplify these provisions, proposing a common time limit for demands from FY 2024-25 onwards, regardless of the charges involved. Additionally, the time limit for taxpayers to avail the benefit of reduced penalty by paying the tax demanded along with interest is recommended to be increased from 30 days to 60 days.