{"id":77181,"date":"2026-10-30T09:47:59","date_gmt":"2026-10-30T09:47:59","guid":{"rendered":""},"modified":"2026-10-30T09:47:59","modified_gmt":"2026-10-30T09:47:59","slug":"section-74-penalties-require-proven-fraud-wilful-misstatement-or-suppression-not-mere-return-non-disclosure-or-audit-payment","status":"publish","type":"post","link":"https:\/\/goodsandservicetax.in\/GST\/?p=77181","title":{"rendered":"Section 74 penalties require proven fraud, wilful misstatement or suppression, not mere return non-disclosure or audit payment."},"content":{"rendered":"<p>Section 74 penalties require proven fraud, wilful misstatement or suppression, not mere return non-disclosure or audit payment.<br \/>Case-Laws<br \/>GST<br \/>Section 74(1) penalties for reverse-charge tax and input tax credit defaults require fraud, wilful misstatement, or suppression of facts causing the tax or credit lapse. Non-disclosure of supplies in returns, payment after audit verification, and accounting entries do not, without more, establish or disprove those conditions. Proper-officer satisfaction must rest on foundational facts rather than mechanical reliance on return discrepancies. Explanations for delayed reverse-charge payments and input tax credit not reversed on written-off vendor liabilities remain material to whether there was an intention to evade tax.<br \/> TMI Updates &#8211; Highlights, quick notes, marquee, annotation, news, alerts <\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n<p align=\"center\"><strong>Plain text (Extract) only<\/strong><BR>For full text:-<a href=\"https:\/\/www.taxtmi.com\/highlights?id=105615\">Visit the Source <\/a><\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 74 penalties require proven fraud, wilful misstatement or suppression, not mere return non-disclosure or audit payment.Case-LawsGSTSection 74(1) penalties for reverse-charge tax and input tax credit defaults require fraud, wilful misstatement, &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77181","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/77181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=77181"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/77181\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=77181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=77181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=77181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}