Section 75 of the CGST Act: General Provisions Relating to Determination of Tax
Section 75 of the Central Goods and Services Tax Act, 2017 lays down procedural safeguards and common rules for GST tax determination, including hearings, limitation periods, reasoned orders, interest, recovery and penalties.
Scope and meaning of Section 75
Section 75 contains general rules for the adjudication of GST demands. A show cause notice informs the taxable person of the proposed demand and its grounds; adjudication is the proper officer's determination after considering the case and any response or hearing. The section protects the opportunity to be heard, limits an order to the notice, and specifies how time limits and consequential penalties operate.
For tax periods up to financial year 2023-24, section 73 concerns cases without fraud, wilful misstatement or suppression to evade tax, while section 74 concerns such allegations. For financial year 2024-25 onward, section 74A provides the unified determination framework with different penalty treatment depending on the facts.
Section 75: Explanation of Every Subsection
Section 75(1): Exclusion of court or tribunal stay
When service of a notice or issuance of an order is stayed by a court or Appellate Tribunal, the duration of the stay is excluded while computing the applicable limitation periods under section 73(2) and (10), section 74(2) and (10), or section 74A(2) and (7).
Section 75(2): Fraud allegation not established under section 74
If an appellate authority, tribunal or court holds that a section 74(1) notice cannot be sustained because fraud, wilful misstatement or suppression of facts to evade tax is not proved, the proper officer must determine tax as though the notice had been issued under section 73(1).
Section 75(2A): Penalty where fraud is not established under section 74A
Where an appellate authority, tribunal or court finds that the higher penalty under section 74A(5)(ii) is unsustainable because fraud, wilful misstatement or suppression to evade tax is not proved, the penalty is payable under section 74A(5)(i) instead.
Section 75(3): Orders following appellate or judicial directions
An order required to implement a direction of an Appellate Authority, Appellate Tribunal or court must be issued within two years from communication of that direction.
Section 75(4): Mandatory opportunity of hearing
A hearing must be provided when the person chargeable with tax or penalty requests one in writing, or when an adverse decision is contemplated.
Section 75(5): Adjournments
For sufficient cause, the proper officer may allow time and adjourn a hearing, recording reasons in writing. A person cannot receive more than three such adjournments during the proceedings.
Section 75(6): Reasoned order
The proper officer must state the relevant facts and the basis of the decision in the order.
Section 75(7): Demand cannot exceed the notice
Tax, interest and penalty demanded in the order cannot exceed the amounts specified in the notice, and no demand may be confirmed on grounds not stated in the notice.
Section 75(8): Consequential changes to interest and penalty
If an appellate authority, tribunal or court changes the determined tax amount, interest and penalty must be modified accordingly, taking the revised tax amount into account.
Section 75(9): Interest remains payable
Interest on unpaid or short-paid tax remains payable even if the determination order does not expressly specify it.
Section 75(10): Proceedings concluded after statutory deadline
Adjudication proceedings are deemed concluded if the order is not issued within the applicable time limit in section 73(10), section 74(10) or section 74A(7). For the respective regimes, these ordinarily correspond to three years, five years and five years, subject to the applicable statutory rules for computing time.
Section 75(11): Exclusion while revenue appeal is pending
Where an issue was decided against revenue in other proceedings and the relevant appeal is pending before a higher forum, the specified intervening period between appellate decisions is excluded when computing the limitation under section 73(10), section 74(10) or section 74A(7) for notices concerning that issue.
Section 75(12): Recovery of unpaid self-assessed tax
Despite sections 73, 74 and 74A, unpaid self-assessed tax in a section 39 return, and interest on it, may be recovered under section 79. The statutory explanation also treats tax payable on outward supplies declared under section 37 but omitted from the section 39 return as self-assessed tax.
Section 75(13): No duplicate penalty for same act
When a penalty is imposed under section 73, 74 or 74A, no additional penalty may be imposed on the same person under another CGST Act provision for the same act or omission.
Practical Implications for GST Notices and Orders
- Check the financial year: identify whether section 73, 74 or 74A governs the disputed period.
- Request a hearing in writing: subsection (4) independently requires a hearing where an adverse decision is contemplated.
- Compare the notice and final order: an order cannot increase the demanded amounts or introduce new grounds beyond the notice.
- Check limitation carefully: account for statutory exclusions, stays, appellate directions and the applicable order deadline.
- Review recovery and penalty: unpaid self-assessed tax may be recovered under section 79, and duplicate penalties for the same act are restricted.
Related procedural provisions include section 78 (initiation of recovery), section 79 (recovery) and section 107 (appeals).
Official Act, Amendments and Clarifications
- India Code: Central Goods and Services Tax Act, 2017
- CBIC Tax Information Portal: GST Acts, amendments and circulars
- Finance (No. 2) Act, 2024: introduction of section 74A and related changes
- Finance Act, 2025: amendment of section 75
- CBIC Circular No. 254/11/2025-GST: proper officer under sections 74A and 75(2)
Reviewed: 7 October 2026. This explanatory article is not a substitute for the enacted statutory language, notifications, or case-specific legal advice.