GST Notice Arrives? Your 42-Month Window Explained

From FY 2024-25, GST Section 74A lets tax officers issue notices up to 42 months back for unpaid dues. Miss the 60-day settlement window and penalties can stack up fast. Here is what every small business owner and self-employed professional needs to know.

Here's what happened: GST Section 74A, effective from FY 2024-25, sets a 42-month notice period for recovering unpaid or short-paid tax, replacing the earlier Section 73 and 74 dual-track system.. Tax officers must issue a final order within 12 months of the notice; if they miss this deadline, the demand can be challenged as legally time-barred.. Penalties under 74A scale with how quickly you act: 15% if you pay within 60 days of the notice, rising to 100% of tax dues if the case goes uncontested to final order..

What you should do: Check your GST portal inbox today — Section 74A notices for FY 2024-25 can arrive any time from April 2024 onwards, and missing the 60-day window costs you a much higher penalty.. Gather all purchase invoices, e-way bills, and GSTR-2B reconciliation records for FY 2024-25 before responding; a mismatch between your filed returns and these documents is the most common trigger.. If you receive a notice, consult a GST practitioner immediately and calculate whether settling within 60 days at 15% penalty is cheaper than contesting — for most small dues it almost always is..

If the officer fails to pass a final order within 12 months of the notice date, file a written objection citing the time-bar — the entire demand can be dropped on procedural grounds alone.