Supreme Court tightens requirements for GST fraud and suppression notices
The Supreme Court has held that GST Section 74 show-cause notices must set out specific facts supporting allegations of fraud, wilful misstatement or suppression, rather than simply reproducing statutory wording. The ruling could strengthen retailers’ ability to contest deficient tax demands.
What happened
GST/CGST Act · Supreme Court ruled that GST Section 74 show-cause notices must state specific grounds and facts supporting alleged fraud, wilful misstatement or
Key facts
- Section 74
- FY 2023-24
- Assessment Year 2018-19
- June 13, 2025
Why this matters
Acquirers should reassess Section 74 exposures in diligence, distinguishing well-evidenced tax claims from notices that rely mainly on boilerplate statutory language.