GST : Tax Evasion or Incorrect Input Tax Credit Claim

 GST : Tax Evasion or Incorrect Input Tax Credit Claim

Section 73 & 74 of the CGST Act, 2017

Section 73	Section 74
The officer has reason to believe that there has been a tax evasion or incorrect input tax credit claimed.	The officer has evidence that tax has been evaded with fraudulent intent.
requires a belief or suspicion of tax evasion	requires concrete evidence of fraudulent intent
the taxpayer can pay the tax and penalty within 30 days of receiving the notice to avoid any further proceedings	The taxpayer must respond within 30 days and prove their innocence.
The penalty under Section 73 is limited to 10% of the tax amount	The penalty under Section 74 can be as high as 100% of the tax amount.
	the officer must have sufficient evidence to support their claim of fraudulent intent under Section 74
	The burden of proof lies with the taxpayer in cases under Section 74. They must provide evidence to prove their innocence.