Ineligible input tax credit alone does not establish suppression; enhanced consequences require proof of intent to evade tax.
Notes
GST
Section 74 requires more than wrongful availment or utilisation of input tax credit: fraud, wilful misstatement, or suppression of facts with intent to evade tax must be alleged and proved. Under the former Explanation 2, suppression covered failure to declare legally required information or failure to provide information sought in writing, but did not remove the intent requirement. Disclosures in returns, annual reconciliations and portal filings materially weaken a non-declaration allegation. Mere audit detection or non-response to audit communications does not independently establish suppression, particularly where the notice did not plead that basis. Section 74 proceedings and enhanced penalties therefore require evidence of deliberate concealment, and appellate review cannot sustain a demand on a materially new allegation beyond the show cause notice.
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