Core concepts
- 01Self-assessment (Sec 59) is the norm; provisional, scrutiny, best judgment for non-filers (Sec 60-64).
- 02Audit by tax authority (Sec 65) or special audit by CA/CMA (Sec 66).
- 03Demand: Sec 73 (non-fraud) — 3 yrs from due date of annual return; Sec 74 (fraud) — 5 yrs.
- 04Anti-profiteering (Sec 171) — benefit of tax reduction/ITC must be passed to consumer.
- 05Advance Ruling Authority (AAR) & Appellate AAR — binding on applicant + jurisdictional officer.
Flowchart summary
Demand & Recovery Tree Show Cause Notice (Sec 73/74) | Adjudication Order | Appeal -> Appellate Authority -> GSTAT -> HC -> SC | Recovery: garnishee, sale of property, prosecution
Exam-critical pointers
- ⭐GST Appellate Tribunal (GSTAT) — recently operationalised (notified 2024).
- ⭐Anti-profiteering provisions now under Competition Commission of India (CCI).
- ⭐Pre-deposit for appeal: 10% of tax + 25% for second appeal (max ₹25 cr).
- ⭐Sec 74 demand has lower threshold of fraud/suppression — important for tax planning.
Make it click