EET Pvt Ltd has been issued a show cause notice (SCN) on 28th March, 2024 under section 73(1) of the CGST Act, 2017 on account of short payment of tax for the month of April, 2022. EET Pvt Ltd contends that the show caus

The Show Cause Notice (SCN) under section 73(1) of the CGST Act can be issued at least 3 months prior to the time limit specified for issuance of order under section 73(10) and adjudication order under section 73(10) has to be issued within 3 years from the due date for furnishing of annual return for the financial year to which the tax short-paid/not paid relates to. Thus, SCN under section 73(1) of the CGST Act can be issued within 2 years and 9 months from the due date for furnishing of annual return for the financial year to which the short-paid/not paid tax relates to. The SCN has been issued for the period April, 2022 which falls in the financial year 2022-23. Due date for furnishing annual return for the FY 2022-23 is 31.12.2023 and 3 years' period from due date of filing annual return lapses on 31.12.2026. Thus, SCN under section 73(1) ought to have been issued latest by 30.09.2026. Since in the given case, the notice has been issued on 28.03.2024, notice is not time-barred. Therefore, the contention of EET Pvt. Ltd. is incorrect.