At a high-profile GST Conclave held jointly by the Central GST (CGST) Ahmedabad Zone and the Gujarat Chamber of Commerce and Industry (GCCI), tax experts and industry stakeholders raised serious concerns about the growing trend of issuing GST audit scrutiny notices under Section 74(A)—a provision specifically intended for cases involving fraud.

Participants argued that the majority of scrutiny notices are being issued under Section 74(A), instead of the more appropriate Section 73, which deals with genuine errors and non-fraudulent discrepancies. Deep Thakkar, Co-Chairman of the GCCI’s Indirect Tax Committee, highlighted that this practice not only subjects honest taxpayers to undue penalties but also disqualifies them from availing benefits under the government’s amnesty scheme.

“Section 74(A) should be invoked strictly in cases where fraud is suspected. Using it indiscriminately creates an environment of fear and unfair treatment,” Thakkar said. He also pressed for complete digitisation of all GST-related notices and orders to eliminate manual intervention and urged for a streamlined process for GST registrations.

Responding to the concerns, Sunil Kumar Mall, Chief Commissioner of CGST Ahmedabad Zone, stated that the department has already increased manpower for handling GST registrations to reduce processing delays and facilitate taxpayer compliance.

Sanjay Bansal, Principal Commissioner of CGST Ahmedabad, acknowledged the issues raised and reiterated the government’s commitment to improving the ease of doing business, especially for micro, small, and medium enterprises (MSMEs), as the GST regime approaches its eighth anniversary.

Officials from the CGST assured attendees that the feedback collected during the conclave would be carefully reviewed and necessary action would be taken to ensure more balanced and transparent implementation of GST audit provisions.

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