Section 74 Of CGST Act Can Be Invoked If Assessee Fails To Report Actual Sales To Evade Tax: Kerala High Court

The Kerala High Court upheld the invocation of Section 74 of the Central Goods and Services Tax (CGST) Act against an assessee who failed to report actual sales to evade tax. The court emphasized that the provisions of Section 74 apply when there is evidence of fraud, willful misstatement, or suppression of facts to evade tax. The assessee had underreported sales and was found to have engaged in fraudulent activities. The court’s decision reinforces the applicability of Section 74 in cases of tax evasion and highlights the importance of accurate reporting and compliance with tax laws. This ruling serves as a deterrent against tax evasion and upholds the integrity of the tax system.