Amendments to Section 75 of the Central Goods and Services Tax Act
Section 75 of the Central Goods and Services Tax (CGST) Act has been amended to include several updates. Firstly, in sub-section (1), new references to sub-sections (2) and (7) of section 74A have been added, providing additional context for legal proceedings. A new sub-section (2A) has been introduced, stating that if an appellate authority, tribunal, or court finds that a penalty under clause (ii) of sub-section (5) of section 74A is not justified due to lack of evidence for fraud or misstatement, the penalty under clause (i) of the same section will apply instead.
Further changes include a revision of sub-section (10), which now clarifies that adjudication proceedings are considered concluded if the order is not issued within the specified timeframe under sections 73, 74, or 74A. Sub-sections (11), (12), and (13) have been updated to include references to section 74A, ensuring consistency across the legal framework. These amendments aim to streamline the adjudication process and provide clearer guidelines for penalties and their enforcement under the CGST Act.
Note: It is an AI generated summary for reference purpose only.
(a)insub-section(1),afterthewordandfigures“section74”,thewords, brackets, figures and letter “or sub-sections (2) and (7) of section 74A” shall be inserted;
(b)after sub-section (2), the following sub-section shall be inserted, namely:––
“(2A) Where any Appellate Authority or Appellate Tribunal or court concludes that the penalty under clause (ii) of sub-section (5) of section74Aisnotsustainableforthereasonthatthechargesoffraudor anywilful-misstatementorsuppressionoffactstoevadetaxhasnotbeen establishedagainstthepersontowhomthenoticewasissued,thepenalty shall be payable by such person, under clause (i) of sub-section (5) of section 74A.”
(c)for sub-section (10), the following sub-section shall be substituted, namely:––
