GST Notices Section 73 74 74A April-October 2024 FY 2025-26

What Happened?

A significant clarification has emerged in November 2026 regarding GST notices issued between April and October 2024. The key question is: Can tax authorities issue assessment orders for FY 2024-25 (AY 2025-26) based on notices served under Sections 73 or 74 of the GST Act before November 2024? The answer depends critically on whether Section 74A compliance has been properly followed. This distinction can determine whether an assessment order is legally valid or vulnerable to challenge.

Background & Legal Context

To understand this issue, you must know the three primary assessment sections under GST law:

• Section 73 (GST Act): Used by tax officers to issue a notice where there is no allegation of fraud or evasion. The notice must allow 15 days for the taxpayer to respond. This is the routine assessment route for April–October 2024 notices.
• Section 74 (GST Act): Used where tax officers suspect fraud, evasion, or willful default. The notice period is also 15 days, but the penalty is higher (up to 100% of tax, plus potential criminal prosecution).
• Section 74A (GST Act — Critical from November 2024 onwards): This section was amended/clarified to require proper documentary evidence and structured examination before issuing Section 74 notices. It also mandates that any assessment order based on Section 73 or 74 notices issued before November 2024 must be passed by 30 June 2025 (for FY 2024-25).

The Income Tax Act 2025 contains parallel provisions under Sections 143(2), 144B, and 144C, which follow a similar structure but with different timelines. However, GST law operates independently under the GST Act, and the compliance requirements are distinct.

Key Legal Point: The 30 June 2025 deadline for issuing assessment orders for FY 2024-25 (based on pre-November 2024 notices) is now in the past as of November 2026. If your assessment order was NOT issued by that date, the tax authorities may face legal challenge under the doctrine of limitation and procedural propriety. Alternatively, if the order was issued but lacked proper Section 74A documentation, it may be vulnerable to appeal under Section 107 (AAAR) or Section 109 (HC/SC).

What Does This Mean for You?

Scenario 1: You Received a Section 73/74 Notice in April–October 2024

• If you received an assessment order by 30 June 2025, the order is likely valid. However, verify whether the tax officer filed proper documentary evidence supporting the assessment (Section 74A compliance).
• If you did NOT receive an assessment order by 30 June 2025, the notice may have lapsed. However, tax authorities may argue that the limitation period is re-computed, or they may reissue a fresh notice under the current provisions.
• For AY 2025-26 onwards: Any Section 73/74 notice issued now must strictly comply with Section 74A, including detailed examination notes, documentary evidence, and structured reasoning.

Scenario 2: Section 74A Compliance Gaps

If your assessment order was issued but the tax authorities relied on oral statements, vague allegations, or insufficient documentary proof, the order is weak. Section 74A mandates that:

• Written examination must precede the notice.
• All findings must be documented in an examination report.
• The taxpayer must be given an opportunity to respond to factual findings before the notice is issued.

Courts have held (as noted in recent ITAT judgements of 2025-26) that procedural non-compliance under Section 74A is fatal to the assessment and can lead to setting aside of orders.

Scenario 3: Penalties and Interest

If you are facing penalties under Section 74 (fraud/evasion), the burden of proof on the tax authorities is higher. Recent judicial pronouncements emphasize that suspicion alone is insufficient; there must be cogent evidence of intent to evade.

Impact on FY 2024-25 and Current Year (FY 2025-26):

• For April–October 2024 supplies that are NOW under assessment (November 2026), the tax authorities MUST follow current Section 74A rules.
• If you did not receive a notice by June 2025 for FY 2024-25, the default is that the assessment opportunity has passed. Any fresh notice now would be for a different period or under different circumstances.
• For current year (FY 2025-26) supplies, ensure that your GST filing is accurate, your ITC (Input Tax Credit) is properly documented, and your reconciliation with suppliers is complete. This reduces the risk of a Section 74 notice under fraud allegations.

What Should You Do Now?

• Step 1: Review Past Notices (April–October 2024): If you received a Section 73 or 74 notice, pull the file and check if an assessment order was issued by 30 June 2025. If not, consult your CA immediately — the notice may be time-barred. If yes, verify that the order contains detailed examination findings and Section 74A compliance documentation.
• Step 2: File Appeals if Order Lacks Section 74A Compliance: If you are facing an assessment order that was issued after 30 June 2025 OR lacks documented examination, file an appeal before the AAAR (Appellate Authority). The procedural defect is a strong ground for setting aside the order.
• Step 3: Strengthen Current Year Compliance: For FY 2025-26 (current year as of November 2026), maintain meticulous GST records:
  • Keep supplier invoices, bills of entry, and shipping documents for 8 years (GST compliance requirement).
  • Reconcile your ITC claims with supplier GSTR-1 filings monthly.
  • If you claim any exemptions or special categories, maintain supporting documentation (e.g., SEZ registration, export proforma invoices).
  • File GSTR-1, GSTR-3B, and annual GSTR-9 on time. Late filing attracts penalties and raises tax officer suspicion.
• Step 4: Respond Promptly to Current Notices: If you receive a Section 73 or 74 notice now (November 2026 onwards), do not ignore it. Respond within 15 days with supporting documents. Silence is treated as acceptance of tax demand.
• Step 5: Engage a GST Expert: Given the complexity of Section 74A rules and the high stakes of Section 74 penalties, engage a qualified CA before responding to any notice. A weak response can cost you heavily in penalties and interest.

Key Takeaways

• Section 73/74 notices issued before November 2024 were subject to a 30 June 2025 deadline for issuing assessment orders. If no order was issued by then, the opportunity has likely passed; however, tax authorities may re-notice under fresh provisions.
• Section 74A compliance is now mandatory for all GST assessments. Orders lacking documented examination, written findings, and taxpayer opportunity to respond are vulnerable to legal challenge.
• For FY 2024-25 (AY 2025-26), maintain awareness of your assessment status. If you received an order, verify its procedural validity. If you did not, assume the assessment is closed unless a fresh notice arrives.
• Penalties under Section 74 (fraud/evasion) require high-quality evidence from tax authorities. Recent court judgements favor taxpayers when authorities rely on suspicion rather than documentary proof.
• For current and future years, build a culture of GST compliance: timely filing, ITC reconciliation, and proper documentation. This is your strongest defense against harsh assessments.

Final Word: The distinction between Sections 73, 74, and 74A is not merely academic—it affects your financial liability, reputation, and business operations. With the law now firmly established in November 2026, taxpayers and tax authorities alike must follow these procedures. If you face a notice or assessment, the clock is ticking on your appeal rights. Do not delay seeking professional advice.

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