# 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 and form names

- Sections: 74A
- Forms: DRC-01

## 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.

Unverified: this time limit is to be confirmed against the notified text.

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.
- 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.
- Not confirmed: 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.
- Source: [CGST Act 2017, s.74A](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter15/Section74A_v1.00.html)
- Source: [Finance (No. 2) Bill 2024, cl.134 (s.74A as introduced)](https://www.indiabudget.gov.in/budget2024-25/doc/Finance_Bill.pdf)
- Source: [CGST Rules 2017, rule 142](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter18/rule142_v1.00.html)

## Reply form

[FORM GST DRC-06: Reply to show cause notice](https://charterai.in/notice/form/gst-drc06), filed through GST portal: Services > User Services > View Notices & Orders.

The field list 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.

## Related law

- Section 74A, CGST Act, 2017

## FAQ

### 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.

Draft this reply: https://charterai.in/sign-up

Canonical: https://charterai.in/notice/gst-show-cause-notice-section-74a-fy-2024-25-onwards