Pre-notice payment and Section 73/74 waiver
The Goods and Services Tax regime in India is governed by the Central Goods and Services Tax Act 2017, the Integrated Goods and Services Tax Act 2017, the respective State GST Acts, and the GST (Compensation to States) Act 2017. Classification under the HSN, determination of the place of supply, eligibility and conditions for input tax credit, reverse-charge obligations, and the anti-profiteering provisions each carry litigation risk. AMLEGALS advises on the correct position before a return is filed and defends assessees before the adjudicating authority, the Appellate Authority, the GST Appellate Tribunal and the High Courts.
GST proceedings follow a structured sequence — a show-cause notice under Section 73 (non-fraud) or Section 74 (fraud, suppression or wilful misstatement), a personal hearing, an adjudication order, and appeals. The Appellate Tribunal (constituted under the CGST Amendment Act 2023) is the first statutory appellate forum; further appeals lie to the High Court and the Supreme Court. AMLEGALS handles every stage, from responding to the initial notice to drafting the appeal.
Advising on the correct HSN/SAC classification, applicable rate, place-of-supply determination, and eligibility for exemptions and concessional rates.
Structuring procurement and documentation to ensure eligible input tax credit, and filing and defending refund claims under Sections 54 and 55 of the CGST Act.
Drafting the written reply and appearing at the personal hearing before the adjudicating authority in proceedings under Sections 73, 74 or 76 of the CGST Act.
Filing appeals before the GST Appellate Authority, the GST Appellate Tribunal and the High Court, including applications for stay of the disputed demand.
Responding to profiteering complaints, audit objections (Section 65/66) and scrutiny proceedings, and advising on post-audit compliance.
Setting up e-invoicing, e-way-bill and return-filing workflows that comply with the GSTN requirements and reduce mismatch and notice risk.
Under Section 73 of the CGST Act (non-fraud cases), the show-cause notice must be issued at least three months before the time limit for passing the adjudication order, which is three years from the due date of the annual return. Under Section 74 (fraud, suppression or wilful misstatement), the outer limit is five years.
The Appellate Authority and the GST Appellate Tribunal may grant a stay of the disputed demand. Under Section 112(9), recovery of the balance is deemed stayed once the appellant pays the admitted amount and the pre-deposit of a further 10% of the remaining disputed tax (capped at twenty crore rupees each for CGST and SGST). The High Court exercises writ jurisdiction to stay demands in exceptional circumstances.
For the first appeal to the Appellate Authority under Section 107, the pre-deposit is the admitted amount plus 10% of the disputed tax. For the second appeal to the GST Appellate Tribunal under Section 112(8), a further 10% of the remaining disputed tax is payable. Each stage is capped at twenty crore rupees for CGST and twenty crore rupees for SGST (forty crore rupees for IGST), following the Finance (No. 2) Act 2024.
Under Section 9(3) and 9(4) of the CGST Act, the liability to pay GST shifts to the recipient of the supply in specified cases — including imports of services, supplies from unregistered persons in notified categories, and supplies of specified goods and services listed in the reverse-charge notification. The recipient must self-invoice and pay the tax.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
Share the key facts for a confidential preliminary assessment of your India matter.