CBIC extends time limit for issuing order under section 73(9) of CGST Act for FY 2018-19 and 2019-20

This tax alert summarizes a recent Notification ^[1] issued by Central Board of Indirect Taxes and Customs (CBIC) extending time limit specified under Section 73(10) of the Central Goods and Services Tax Act, 2017 (CGST Act) for issuance of order.

Section 73(10) of the CGST Act requires the proper officer to issue order under Section 73(9) within three years from the due date for furnishing of relevant annual return.

Earlier vide Notification No. 9/2023 dated 31 March 2023, CBIC had extended the time limit under section 73(10) for issuance of order under Section 73(9) as follows:

(i) for financial year (FY) 2017-18, up to 31 December 2023,
(ii) for FY 2018-19, up to 31 March 2024,
(iii) for FY 2019-20, up to 30 June 2024.

Vide recent Notification, the time limit for issuance of order is further extended:

(i) for FY 2018-19, up to 30 April 2024,
(ii) for FY 2019-20, up to 31 August 2024.

Comments:

• Basis the extension of timelines to issue an order, the timelines to issue show case notice would get revised to 31 January 2024 and 31 May 2024 for FYs 2018-19 and 2019-20 respectively.
• Various High Courts have stayed the issuance of orders during the second extension of timelines for FY 2017-18 on interim basis, in response to the writs filed by the taxpayers.

[1] Notification No. 56/2023 dated 28 December 2023