If you’re a business owner, taxpayer, or CA still worried about old GST notices, it’s time to breathe easier. The legal window to issue most Show Cause Notices (SCNs) under the Goods and Services Tax (GST) for Financial Years 2017-18 and 2018-19 has officially closed – except for a narrow set of fraud-based cases.
Under Section 73 of the CGST Act, which deals with non-fraud cases, the deadlines are long gone. For FY 2017-18, the final date to issue a notice was September 30, 2023, and the order had to be passed by December 31, 2023. Similarly, for FY 2018-19, the SCN deadline was December 31, 2023, with the final order required by March 31, 2024. These dates are past – and so are most liabilities under Section 73.
For fraud or suppression-related cases under Section 74, the window remains open for a bit longer – but only if the department has already acted. For FY 2017-18, the SCN must have been issued on or before August 5, 2024, with the order due by February 5, 2025. For FY 2018-19, the last date to issue such notices is June 30, 2025, with the order deadline being December 31, 2025.
CA Nitin Kaushik emphasizes: “If your business hasn’t received a fraud-based SCN already for FY 2017-18, you’re in the clear. The department cannot pursue it further. For FY 2018-19, only fraud-related cases remain on the table – and only until June 30, 2025.”
What is a Show Cause Notice (SCN) under GST?
An SCN under GST is a legal notice issued by tax authorities when a taxpayer is suspected of violating GST rules. It gives the taxpayer a chance to explain their side before any penalty or action is taken.
When is an SCN Issued?
Common reasons include:
Mismatches between GSTR-1 and GSTR-3B
Wrong Input Tax Credit claims
Non-filing of returns for over 6 months
Discrepancies with e-way bill data
Profiteering despite GST rate cuts
Non-payment or short payment of GST
Wrong refund or ITC claims (with or without fraud)
Not registering under GST when liable
Export mismatches with ICEGATE data
Failure to provide required records or file returns on time
Post-audit findings by GST officers
Key takeaways for taxpayers
> No fresh SCNs for FY 2017-18 unless issued before August 5, 2024 (fraud only)
> FY 2018-19 non-fraud cases are time-barred – no new notices possible
> Fraud-based SCNs for FY 2018-19 still possible until June 30, 2025
> Receiving a notice now? Challenge it. Courts have upheld these legal deadlines
> Fraud allegations must be proven, not just claimed by the department
What’s next?
The government has rolled out an amnesty scheme under Section 73, allowing taxpayers to settle old dues with waived penalties and interest, but only if payment is made by March 31, 2025. From FY 2024-25 onwards, a new Section 74A of the CGST Act will simplify future tax demand and litigation processes, as per ClearTax.
Investors should keep track of their GST notices, know their legal rights, and push back if outdated claims come knocking. The law is on your side – and the clock has run out.