Any invoice or debit note issued in pursuance of any tax payable in accordance with the provisions of section 74 or section 129 or section 130 shall prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE”
The taxpayer can give a representation in FORM GST DRC-06 under Sub-section 9, Section 74 of CGST Act 2017 for the Show Cause Notice issued on the grounds for tax not paid or short paid or availed input tax credit wrongly or for refund issued erroneously.
As per Sub-section 10 of Section 74 of the CGST Act 2017, the taxpayer can issue a notice for tax not paid or short paid or availed input tax credit wrongly or utilized input tax credit wrongly within 5 years from filing of annual return by the taxpayer and in case of refund issued erroneously, the notice has to be issued within 5 years from the date of issue of such refund.
Before serving of the notice in FORM GST DRC-01 by the tax officer, the taxpayer can pay the taxpayer can pay interest @ 18% as per section 50 of the CGST Act and also a penalty of 15% as per Subsection 5 of section 74 and submit the same to the concerned officer in FORM GST DRC-03.
As per Rule 142, FORM GST DRC-02 will be issued by the concerned officer to the taxpayer under Sub-Section 3 of Section 74 of the CGST Act for reasons other than tax not being paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized.
As per sub-section 1 of Section 74 of the CGST Act, the concerned officer will service the notice electronically in FORM GST DRC-01 to the taxpayer where it appears to the tax officer that tax is not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts to evade tax.
As per Section 74 of the CGST Act if the tax officer feels that tax is not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts to evade tax, then the concerned tax official shall serve a notice on the taxable person for the tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable at rate of 18% or as recommended by the GST Council.