Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 73, verbatim (show)
Section 73
* Section 73. Determination of tax 1[, pertaining to the period up to Financial Year 2023-24,] not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts.-
(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.
(2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under subsection (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.
**(10) The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.
1[(12) The provisions of this section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24.]
*Enforced w.e.f. 1st July, 2017.
** Kindly also refer to Notification No. 13/2022 Central Tax dated 5th Jul, 2022 (w.e.f. 01.03.2020).
1. Inserted by section 136 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
73(1)Non-fraud notice
he shall serve notice on the person chargeable with taxSection 73(1)
The notice covers the stated tax, refund and credit defaults with section 50 interest and penalty. The law does not settle the test separating non-fraud reasons from fraud, wilful misstatement or suppression to evade tax.
Questions to answer on the file9 questions
73(2)Notice lead time
at least three months prior to the time limit specified in sub-section (10) for issuance of order.Section 73(2)
The order deadline determines the notice lead time. The law does not settle the consequence of issuing notice with less lead time.
Questions to answer on the file3 questions
73(3) and (4)Other-period statement
The service of such statement shall be deemed to be service of noticeSection 73(3) and (4)
A prior notice must exist, and the other-period statement must rely on the same grounds. Those conditions support the deemed-notice treatment.
Questions to answer on the file4 questions
73(5)Pre-notice payment
pay the amount of tax along with interest payable thereon under section 50Section 73(5)
Payment may use the person's own ascertainment or the officer's ascertainment. Written intimation before notice or statement links to sub-section (6).
Questions to answer on the file5 questions
73(6)No notice for paid amount
shall not serve any notice under sub-section (1)Section 73(6)
The restriction follows receipt of the payment information and covers the tax paid and penalty. Shortfall notice under sub-section (7) and the overriding penalty in sub-section (11) qualify it.
73(7)Shortfall notice
he shall proceed to issue the notice as provided for in sub-section (1)Section 73(7)
The officer must consider the pre-notice payment insufficient. Notice concerns the amount falling short.
Questions to answer on the file3 questions
73(8)Payment after notice
within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.Section 73(8)
Tax and section 50 interest must be paid within the period. Sub-section (11) overrides this penalty relief for its stated self-assessed or collected tax default.
Questions to answer on the file4 questions
73(9)Determination and penalty
a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higherSection 73(9)
The officer considers any representation before determining tax, interest and penalty and issuing the order. The timely-payment route in sub-section (8) qualifies this ordinary outcome.
Questions to answer on the file6 questions
73(10)Order limitation
within three years from the due date for furnishing of annual returnSection 73(10)
The ordinary tax and credit cases use the relevant financial-year annual-return due date; erroneous refund uses three years from refund. The law does not settle the starting date where no annual return is required.
Questions to answer on the file5 questions
73(11)Overriding penalty
Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payableSection 73(11)
Self-assessed tax or amounts collected as tax must remain unpaid beyond thirty days from the payment due date. This rule overrides the stated penalty relief. The law does not settle the due date for collected tax where this section supplies none.
Questions to answer on the file4 questions
73(12)Period reach
shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24.Section 73(12)
The heading carries the same period qualification. Footnote 1 gives no commencement date for either insertion.
Questions to answer on the file3 questions
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
Frequently asked questions
Can pre-notice payment prevent every later notice?
No. Sub-section (6) protects the paid amount, while sub-section (7) permits a shortfall notice. Payment must include section 50 interest and written intimation.
Section 73(5) to (7)
Does timely post-notice payment always remove penalty?
Sub-section (11) overrides the sub-section (8) relief for its stated delayed self-assessed or collected tax. Otherwise the stated thirty-day payment route concludes the notice proceedings without penalty.
Section 73(8) and 73(11)
What starts limitation where no annual return is required?
The law does not settle that starting date. Sub-section (10) uses the annual-return due date for its ordinary tax and credit cases.
Section 73(10)
Amendment history
The CBIC text carries 3 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| Enforced the section. | — | 1st July, 2017 | |
| Directed the reader, against sub-section (10), to a notification. | — | the source shows the notification as operating from 01.03.2020, a date before the notification itself | |
| 1 | Inserted the words ", pertaining to the period up to Financial Year 2023-24," in the heading and inserted sub-section (12). | section 136 of The Finance Act (No. 2) Act, 2024, No. 15 of 2024, dated 16.08.2024[2] | the source's footnote gives no effective date for the insertion; the date shown is the date of the amending Act |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 50 | this provision requires Section 50 | 73(1) "along with interest payable thereon under section 50" |
| Section 44 | this provision requires Section 44 | 73(10) "within three years from the due date for furnishing of annual return for the financial year" |
| Section 74 | this provision branches on Section 74 | 73(1) "other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax" |
| Section 74A | this provision branches on Section 74A | 73(12) "The provisions of this section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24" |
| Rule 142 of the CGST Rules, 2017 | this provision prescribed by rule 142 of the CGST Rules 2017 | 73(9) "determine the amount of tax, interest and a penalty... and issue an order" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (17)
| Number | Date | Subject |
|---|---|---|
| Circular No. 254/11/2025-GST | 27 October 2025 | Assigning proper officer under section 74A, section 75(2) and section 122 of the Central Goods and Services Tax Act, 2017 |
| Circular No. 248/05/2025-GST | 27 March 2025 | Various issues related to availment of benefit of Section 128A of the CGST Act, 2017 |
| Circular No. 237/31/2024-GST | 15 October 2024 | Clarifying the issues regarding implementation of provisions of sub-section (5) and sub-section (6) in section 16 of CGST Act,2017. |
| Circular No. 238/32/2024-GST | 15 October 2024 | Clarification of various doubts related to Section 128A of the CGST Act, 2017. amended by a later instrument |
| Circular No. 224/18/2024-GST | 11 July 2024 | Guidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation. |
| Circular No. 185/17/2022-GST | 27 December 2022 | Clarification with regard to applicability of provisions of section 75(2) of Central Goods and Services Tax Act, 2017 and its effect on limitation |
| Circular No. 178/10/2022-GST | 3 August 2022 | GST applicability on liquidated damages, compensation and penalty arising out of breach of contract or other provisions of law |
| Circular No. 171/03/2022-GST | 6 July 2022 | Clarification on various issues relating to applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 in respect of transactions involving fake invoices. |
| Circular No. 124/43/2019-GST | 18 November 2019 | Seeks to clarify optional filing of annual return under notification No. 47/2019-Central Tax dated 9th October, 2019. |
| Circular No. 125/44/2019-GST | 18 November 2019 | Seeks to clarify the fully electronic refund process through FORM GST RFD-01 and single disbursement. amended by a later instrument |
| Circular No. 106/25/2019-GST | 29 June 2019 | Refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange - reg. withdrawn by a later instrument |
| Circular No. 76/50/2018-GST | 31 December 2018 | Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST |
| Circular No. 77/51/2018-GST | 31 December 2018 | Denial of composition option by tax authorities and effective date thereof |
| Circular No. 71/45/2018-GST | 26 October 2018 | Clarification on issues pertaining to registration as a casual taxable person & recovery of excess Input Tax Credit distributed by an Input Service distributor |
| Circular No. 59/33/2018-GST | 4 September 2018 | Clarification on refund related issues. Rescinded vide Circular No. 125/44/2019 - GST dated 18.11.2019. rescinded by a later instrument |
| Circular No. 31/05/2018-GST | 9 February 2018 | Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017. amended by a later instrument |
| Circular No. 3/03/2017-GST | 5 July 2017 | Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg. |
Notifications (19)
| Number | Date | Subject |
|---|---|---|
| Notification No. 31/2024-Central Tax | 13 December 2024 | Seeks to appoint common adjudicating authority for Show cause notices issued by officers of DGGI |
| Notification No. 28/2024-Central Tax | 27 November 2024 | Seeks to appoint common adjudicating authority for Show cause notices issued by DGGI. |
| Notification No. 20/2024-Central Tax | 8 October 2024 | Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017 |
| Notification No. 21/2024-Central Tax | 8 October 2024 | Seeks to notify date under sub-section (1) of Section 128A of CGST Act. |
| Notification No. 22/2024-Central Tax | 8 October 2024 | Seeks to notify the special procedure under section 148 of the CGST Act for rectification of demand orders issued for contravention of section 16(4) of the said Act. |
| Notification No. 12/2024-Central Tax | 10 July 2024 | Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017. |
| Notification No. 56/2023-Central Tax | 28 December 2023 | Seeks to extend dates of specified compliances in exercise of powers under section 168A of CGST Act |
| Notification No. 53/2023-Central Tax | 2 November 2023 | Seeks to notify a special procedure for condonation of delay in filing of appeals against demand orders passed until 31st March, 2023. |
| Notification No. 38/2023-Central Tax | 4 August 2023 | Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017. |
| Notification No. 29/2023-Central Tax | 31 July 2023 | Seeks to notify special procedure to be followed by a registered person pursuant to the directions of the Hon’ble Supreme Court in the case of Union of India v/s Filco Trade Centre Pvt. Ltd., SLP(C) No.32709-32710/2018. |
| Notification No. 09/2023-Central Tax | 31 March 2023 | Extension of limitation under Section 168A of CGST Act |
| Notification No. 13/2022-Central Tax | 5 July 2022 | Seeks to extend dates of specified compliances in exercise of powers under section 168A of CGST Act |
| Notification No. 14/2022-Central Tax | 5 July 2022 | Seeks to make amendments (First Amendment, 2022) to the CGST Rules, 2017 |
| Notification No. 16/2020-Central Tax | 23 March 2020 | Seeks to make third amendment (2020) to CGST Rules. |
| Notification No. 49/2019-Central Tax | 9 October 2019 | Seeks to carry out changes in the CGST Rules, 2017. |
| Notification No. 16/2019-Central Tax | 29 March 2019 | Seeks to make Second Amendment (2019) to CGST Rules. |
| Notification No. 79/2018-Central Tax | 31 December 2018 | Seeks to amend notification No. 2/2017 - Central Taxes dated 19.06.2017. |
| Notification No. 15/2017-Central Tax | 1 July 2017 | Amending CGST Rules notification 10/2017-CT dt 28.06.2017 |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
Unsettled questions
The words of section 73 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- From what date does the time run where the person is not required to furnish an annual return under section 44 for the financial year?
- From what date do the heading words ", pertaining to the period up to Financial Year 2023-24," and sub-section (12), inserted by section 136 of the Finance (No. 2) Act, 2024, apply? The source's footnote gives the amending Act and its date of 16.08.2024 and no commencement.
- What makes the reason for the non-payment, short payment, erroneous refund or wrong availment one "other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax"? This section gives no test, and the choice between this section and section 74 turns on it.
- What follows where the notice under sub-section (1) is issued less than three months prior to the time limit in sub-section (10)? The sub-section directs the proper officer and attaches no consequence to his not doing it.
- What is "the due date of payment of such tax" in sub-section (11) for an amount collected as tax? The sub-section fixes none, and an amount collected as tax by a person who files no return for it has no due date the section supplies.
See also
- Section 50 of the CGST Act, 2017: interest on delayed payment of tax
- Section 44 of the CGST Act, 2017: annual return
- Section 74 of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-misstatement or suppression of facts
- Section 74A of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
- Section 75 of the CGST Act, 2017: general provisions relating to determination of tax
- Rule 142 of the CGST Rules, 2017: notice and order for demand of amounts payable under the Act
References
- Central Board of Indirect Taxes and Customs. "Section 73. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 3. Retrieved 17 September 2026.
- The Finance Act (No. 2) Act, 2024. Cited in CBIC footnote 1.
External links
- CGST Act, 2017, Section 73 on the CBIC tax information portal