Compliance Calendar

GST Show Cause Notice Limitation Deadlines Are Approaching: FY 2020-21 (Section 74) and FY 2022-23 (Section 73) — A Practitioner’s Action Guide

Published 12 Aug 2026· Updated 25 Aug 2026· 6 min read

Executive Summary

Two significant GST limitation deadlines fall in the coming weeks, and both are worth flagging to every applicable client now rather than closer to the date. The Section 74 (fraud/wilful-misstatement/suppression) limitation window for FY 2020-21 closes for Show Cause Notice issuance on 28 August 2026 on precise statutory calculation (annual-return due date of 28 February 2022, plus the five-year Section 74(10) order period, minus the six-month Section 74(2) pre-notice buffer) — though some practitioner commentary rounds this to 31 August 2026, a distinction worth understanding rather than assuming. The Section 73 (non-fraud) limitation window for FY 2022-23 closes for SCN issuance on 30 September 2026 (annual-return due date of 31 December 2023, plus the three-year Section 73(10) order period, minus the three-month Section 73(2) buffer). Firms should expect increased departmental SCN activity in the run-up to both dates and should use the intervening weeks for proactive reconciliation with affected clients.

Statutory Framework

Sections 73 and 74 of the CGST Act, 2017 govern determination of GST liability not paid, short-paid, erroneously refunded, or where input tax credit has been wrongly availed or utilised — Section 73 where fraud, wilful misstatement or suppression of facts to evade tax is not alleged, and Section 74 where it is alleged. Both sections, as they presently stand, apply only to tax periods up to FY 2023-24; a new Section 74A, inserted by the Finance (No. 2) Act, 2024 with effect from FY 2024-25, now governs determination of tax for that year and all subsequent years, irrespective of whether fraud is alleged, with a single unified timeline.

Section 74 — FY 2020-21: Rule 80 of the CGST Rules, as amended for FY 2020-21 specifically by Notification No. 40/2021-Central Tax dated 29 December 2021, fixed the annual-return due date for that year at 28 February 2022. Section 74(10) requires the adjudication order to be issued within five years of that due date — i.e., by 28 February 2027. Section 74(2) requires the SCN to be issued “at least six months prior” to the Section 74(10) deadline.

Section 73 — FY 2022-23: Under the ordinary Rule 80 timeline, the annual-return due date for FY 2022-23 was 31 December 2023. Section 73(10) requires the order to be issued within three years of that date — i.e., by 31 December 2026. Section 73(2) requires the SCN to be issued “at least three months prior” to the Section 73(10) deadline.

Worked Calculation (Independently Verified)

Provision	Financial Year	Annual Return Due Date	Order Deadline	Pre-Notice Buffer	Calculated SCN Deadline
Section 74	2020-21	28 February 2022	28 February 2027 (+5 years)	6 months	28 August 2026
Section 73	2022-23	31 December 2023	31 December 2026 (+3 years)	3 months	30 September 2026

A note on the FY 2020-21 date: counting exactly six calendar months back from 28 February 2027 gives 28 August 2026. A number of practitioner sources round this to 31 August 2026 (end of month) as a conservative safety margin. Firms should treat 28 August 2026 as the operative statutory cutoff for internal planning purposes, while noting that a taxpayer receiving an SCN dated between 28 and 31 August 2026 should have the exact computation independently checked against the specific facts (including any case-specific extension or exclusion under Section 75(1), discussed below) before concluding the notice is time-barred.

Section 74A — What Changes From FY 2024-25

From FY 2024-25 onward, Sections 73 and 74 no longer apply; Section 74A applies uniformly, regardless of whether fraud is alleged. Under Section 74A(2), the SCN must be issued within 42 months of the annual-return due date (or, in erroneous-refund cases, within 42 months of the date of the erroneous refund). Under Section 74A(7), the order must be issued within 12 months of the SCN, extendable by a competent senior authority, for recorded reasons, by up to six months. Penalty exposure also changes materially under Section 74A: broadly, 10% of the tax due (or ₹10,000, whichever is higher) where fraud is not involved, versus a penalty equivalent to the tax due where fraud, wilful misstatement or suppression is established.

Why It Matters

Limitation deadlines drive Departmental behaviour predictably: SCN volumes typically spike in the weeks immediately before a limitation cutoff, as field formations move to protect revenue before time-barring. Clients with FY 2020-21 or FY 2022-23 exposure — particularly where reconciliation gaps exist between GSTR-1, GSTR-3B, annual returns and books of account — should expect a materially higher chance of receiving a notice in the coming weeks than they would in a routine month.

Key Takeaways

FY 2020-21 (Section 74, fraud/suppression cases): SCN limitation calculates to 28 August 2026; order limitation is 28 February 2027.
FY 2022-23 (Section 73, non-fraud cases): SCN limitation is 30 September 2026; order limitation is 31 December 2026.
From FY 2024-25 onward, the unified Section 74A applies (42-month SCN window, 12-month order window extendable by up to 6 months).
Section 75(1) excludes any period during which service of notice or issuance of order was stayed by a court or the Appellate Tribunal.
Section 36 requires GST records to be retained for 72 months from the annual-return due date, extended to one year after final disposal for records relevant to a pending proceeding.

Action Checklist

List all clients with GST exposure for FY 2020-21 (Section 74) and FY 2022-23 (Section 73) and flag them for proactive review.
Reconcile GSTR-1, GSTR-3B, annual returns (GSTR-9/9C), books of account, e-invoices, e-way bills and ITC records for the relevant year now.
Confirm each client’s registered email and GST-portal contact details are current (Rule 142, FORM GST DRC-01/DRC-01A).
If a notice is received close to or after the calculated deadline, independently verify the exact limitation computation, including any Section 75(1) stay exclusion.
Confirm record-retention practices meet the Section 36 requirement of 72 months.
For clients with FY 2024-25 exposure onward, begin tracking the Section 74A unified timeline separately.

Relevant Sections / Rules / Notifications

Section 73, CGST Act, 2017 (determination of tax — non-fraud cases; applicable up to FY 2023-24)
Section 74, CGST Act, 2017 (determination of tax — fraud/wilful-misstatement/suppression cases; applicable up to FY 2023-24)
Section 74A, CGST Act, 2017, inserted by the Finance (No. 2) Act, 2024, effective FY 2024-25 onward
Rule 80, CGST Rules, 2017 (annual return due date)
Notification No. 40/2021-Central Tax, dated 29 December 2021
Rule 142, CGST Rules, 2017 (FORM GST DRC-01 and DRC-01A)
Section 36, CGST Act, 2017 (record retention)
Section 75(1), CGST Act, 2017 (exclusion of stay period from limitation computation)

FAQs

Q: Is 28 August 2026 or 31 August 2026 the correct SCN deadline for FY 2020-21 under Section 74?
A: On precise calculation — six calendar months counted back from the 28 February 2027 order deadline — the answer is 28 August 2026. Some practitioner commentary rounds this to 31 August 2026 as a conservative approximation.

Q: Does the Section 73/74 limitation framework still apply to FY 2024-25 onward?
A: No. Section 74A, effective FY 2024-25, replaces both sections with a unified 42-month SCN window regardless of whether fraud is alleged.

Q: If a client’s matter was stayed by a court, does that extend the limitation period?
A: Yes. Section 75(1) expressly excludes the stay period from the limitation computation — this must be checked before concluding a notice is time-barred.

Reading Time

8 minutes

Author & Disclaimer

Prepared by Finoscape Editorial Team — contact@finoscape.com. This article is for general informational purposes and does not constitute legal or tax advice. Limitation calculations are illustrative and based on the ordinary statutory timeline; readers should independently verify the exact computation for any specific client against the applicable annual-return due date, any government extension, and any case-specific exclusion under Section 75(1) before relying on this analysis.