Show cause notice u/s 74A (FY 2024-25 onwards): how to reply
Applies to FY 2024-25 onwards regardless of fraud allegation; SCN within 42 months of the annual return due date
- Section
- 74A
- Form names
- DRC-01
- Time to reply
- As specified in the notice. Paying within 60 days of issue ends a non-fraud notice without penalty, or with 25% penalty if fraud is alleged (s.74A(8)(ii), (9)(ii))
- Reply goes on
- FORM GST DRC-06: Reply to show cause notice
What the notice is
Applies to FY 2024-25 onwards regardless of fraud allegation; SCN within 42 months of the annual return due date
Filed through GST portal: Services > User Services > View Notices & Orders.
Time limit to reply
As specified in the notice. Paying within 60 days of issue ends a non-fraud notice without penalty, or with 25% penalty if fraud is alleged (s.74A(8)(ii), (9)(ii)). Set by the statute or rules; counted from service.
- Adjournment is for the officer; not computed here.
- Order period: up to 6 months more, on written reasons, before the 12 months end (s.74A(7) proviso).
- Notice within 42 months from the due date of the annual return (s.74A(2)); order within 12 months from the date of the notice (s.74A(7)), so at most 54 months from that due date, extendable by the Commissioner or an officer not below Joint Commissioner by up to 6 more months.
Unverified: This is to be confirmed against the notified text.
Not confirmed
- The s.74A text was read from the Finance (No. 2) Bill 2024 and a summary of the enacted section; the enacted section on the CBIC repository could not be fetched. The 1 November 2024 commencement date was not re-verified.
- Annual return due dates other than the 31 December default of s.44(1) are not encoded; supply the due date if it was extended.
Basis: CGST Act 2017, s.74A; Finance (No. 2) Bill 2024, cl.134 (s.74A as introduced); CGST Rules 2017, rule 142. Rule last reviewed 2026-10-02.
Prescribed reply form
FORM GST DRC-06: Reply to show cause notice, filed through GST portal: Services > User Services > View Notices & Orders.
Unverified: The field list of this form is to be confirmed against the notified text.
What the reply must include
- limitation check against the 42-month-from-annual-return-due-date rule, not the s.73(10) period
- note whether the SCN alleges fraud within s.74A and rebut it if so
- reconciliation table for the demand basis
- s.75(4) personal hearing request
Reply outline
Same DRC-01 skeleton as s.73/74, but s.74A applies to FY 2024-25 onwards regardless of a fraud allegation, first confirm the SCN's own limitation computation (42 months from the annual return due date) rather than assuming the shorter s.73(10) period. Where the SCN nonetheless alleges fraud/suppression within a s.74A notice, rebut it on the merits using the same wilful-intent standard as the s.74 template, since s.74A carries a higher penalty band where fraud is established. Build the same reconciliation and quantification approach as s.73.
Preliminary objections
Limitation, DIN/RFN validity, vague SCN, and (for s.74/74A) absence of fraud per Instruction 05/2023.
Facts
Registration, tax period, and the audit/scrutiny findings the SCN is founded on.
Issue-wise submissions
One sub-heading per demand item with reconciliation and supporting documents.
Quantification
Tax/interest/penalty computation contested or accepted, split CGST/SGST/IGST/cess.
Prayer
Request the demand be dropped, or reduced to the amount accepted.
Hearing request
Personal hearing is mandatory under s.75(4), request a date.
FAQs
What is a Show cause notice u/s 74A (FY 2024-25 onwards)?
Applies to FY 2024-25 onwards regardless of fraud allegation; SCN within 42 months of the annual return due date
What is the time limit to reply to a Show cause notice u/s 74A (FY 2024-25 onwards)?
As specified in the notice. Paying within 60 days of issue ends a non-fraud notice without penalty, or with 25% penalty if fraud is alleged (s.74A(8)(ii), (9)(ii)). To be confirmed against the notified text. Set by the statute or rules; counted from service.
How is the reply to a Show cause notice u/s 74A (FY 2024-25 onwards) filed?
On FORM GST DRC-06: Reply to show cause notice, through GST portal: Services > User Services > View Notices & Orders.
What should the reply include?
Limitation check against the 42-month-from-annual-return-due-date rule, not the s.73(10) period; Note whether the SCN alleges fraud within s.74A and rebut it if so; Reconciliation table for the demand basis; S.75(4) personal hearing request.
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This page summarises the notice type for chartered accountants and is not legal advice. Check the notice and the notified text before you file.