Q. GST Audit by Department from 2017-18 to 2022-23.

Question

One of my clients has been issued notice for GST Audit for FY 2017-18 to FY 2022-23. GSTR 9 and 9C has not been filed by the client for FY 2017-18 , 2018-19 and 2019-20.
My Question is can department force us to file GSTR 9 and 9C for FY 2017-18 and 18-19 when the date to issue SCN u/s 73 is time barred ?

Thanks.

Answer 1

Time Limit for Issuance of SCN under Section 73: The time limit for issuing a show cause notice under Section 73 is generally within three years from the due date of filing of the annual return for the relevant financial year.

Filing of GSTR-9 and GSTR-9C: The requirement to file GSTR-9 and GSTR-9C is mandated by law, and the deadlines for their filing are specified by the GST authorities. The GST Council and the Central Board of Indirect Taxes and Customs (CBIC) have the authority to extend these deadlines.

Time-Barred SCN: If the time limit for issuing a show cause notice under Section 73 for a particular financial year has expired, it means the department cannot initiate demand proceedings for tax not paid, short paid, or input tax credit wrongly availed for that period. However, this does not automatically exempt taxpayers from the obligation to file GSTR-9 and GSTR-9C if they were required to do so by law.`11

While the department may not be able to enforce tax demands for the years for which the issuance of SCN under Section 73 is time-barred, the obligation to file GSTR-9 and GSTR-9C for those years, if applicable, remains based on the statutory requirements. The GST law mandates the filing of these returns, and non-compliance can attract penalties and interest.

Regards, CA. Praveen Sharma

www.linkedin.com/in/capraveensh