What Are GST Dept.’s Time Limits for SCNs and Adjudication Orders for FY 2018-19 to 2026-27

A detailed reference chart outlining the statutory deadlines for issuance of Show Cause Notices (SCNs) and adjudication orders under Sections 73, 74 and the newly introduced Section 74A of the Central Goods and Services Tax (CGST) Act, 2017 has brought renewed focus on the timelines governing GST demand proceedings across multiple financial years.

Key Timelines Under Sections 73 and 74

Under the CGST regime, Section 73 deals with tax demands involving non-fraud cases, while Section 74 applies to cases involving fraud, suppression, wilful misstatement, or tax evasion.

The document notes that the due dates for filing annual returns for FY 2018-19, FY 2019-20 and FY 2020-21 were extended through various notifications and amendments. These extensions consequently affected the limitation periods for issuance of SCNs and passing of adjudication orders.

For FY 2018-19, where the annual return filing deadline was extended to 31 December 2020, the last date for issuance of SCN under Section 73 was computed as 30 September 2023, while the deadline for passing the adjudication order under Section 73(10) was 31 December 2023. In fraud-related cases under Section 74, the last date for SCN issuance was 30 June 2025 and the final order deadline was 31 December 2025.

Similarly, for FY 2019-20, the extended annual return deadline of 31 March 2021 resulted in the Section 73 SCN deadline being fixed at 31 December 2023 and the adjudication order deadline at 31 March 2024. Under Section 74, the corresponding deadlines were 30 September 2025 for SCNs and 31 March 2026 for adjudication orders.

The chart further specifies that for FY 2020-21, the last date for issuance of Section 73 SCNs is 30 November 2024, while adjudication orders must be passed by 28 February 2025. For Section 74 proceedings relating to the same year, the deadlines extend up to 31 August 2026 for SCNs and 28 February 2027 for adjudication orders.

For FY 2021-22 onward, where no annual return extension was granted, the timelines continue in the normal statutory pattern. The last date for issuing SCNs under Section 73 for FY 2023-24 has been calculated as 30 September 2027, while the adjudication order deadline stands at 31 December 2027.

Introduction of Section 74A Changes GST Litigation Landscape

One of the most significant developments highlighted in the document is the introduction of Section 74A for FY 2024-25 onwards.

Unlike the earlier distinction between non-evasion and evasion cases under Sections 73 and 74, Section 74A introduces a common limitation period for all demand proceedings irrespective of the nature of the offence.

Under the new provision:

A show cause notice must be issued within 42 months from the due date of furnishing the annual return for the relevant financial year.
The adjudication order must be passed within 12 months from the date of issuance of the SCN.
The adjudication period may be extended by a maximum of six additional months by the competent authority.

For FY 2024-25, where the annual return due date is 31 December 2025, the last date for issuing SCNs under Section 74A has been calculated as 30 June 2029.

Similarly:

FY 2025-26 SCN deadline: 30 June 2030
FY 2026-27 SCN deadline: 30 June 2031

Legal Questions on Limitation Still Open

The document also contains an important disclaimer stating that the computation of timelines has been prepared without adjudicating upon the legal validity of various government notifications that extended deadlines for adjudication orders.

Additionally, it leaves open the contentious legal issue of whether extension of the due date for filing annual returns automatically extends the limitation period for issuance of show cause notices under the CGST Act.

Tax professionals believe this aspect could continue to remain a subject matter of litigation before higher judicial forums, especially in cases where taxpayers challenge delayed SCNs on limitation grounds.

Impact on Businesses and GST Litigation

Experts say the consolidated timeline chart could become a useful compliance and litigation management tool for businesses facing pending GST investigations or adjudication proceedings.

With GST authorities increasingly intensifying scrutiny relating to past financial years, taxpayers are expected to closely monitor these statutory deadlines to assess whether notices and adjudication orders are issued within permissible limitation periods under the CGST Act.