What is the difference between GST demands under sections 73, 74 and 74A, and what was the section 128A waiver?

Short answer

Section 73 covered demands without fraud and section 74 those with fraud, wilful misstatement or suppression, for 2017-18 to 2023-24. From 2024-25, both are covered by section 74A: a notice within 42 months of the annual return due date and an order within 12 months of the notice. Penalties fall if you pay early. Section 128A waived interest and penalty on section 73 demands for 2017-18 to 2019-20 where the tax was paid by 31 March 2025.

Which section applies

Period	No fraud	Fraud, wilful misstatement or suppression
2017-18 to 2023-24	Section 73	Section 74
2024-25 onwards	Section 74A	Section 74A

Time limits

	Section 73	Section 74	Section 74A
Show cause notice	At least 3 months before the order deadline	At least 6 months before the order deadline	Within 42 months of the due date of the annual return
Order	Within 3 years of the annual return due date	Within 5 years	Within 12 months of the notice (extendable by 6 months)

Penalty, and how to reduce it

Without fraud (73, or 74A non-fraud):

Pay tax and interest before the notice, or within the time allowed after it (30 days under 73, 60 days under 74A): no penalty.
Otherwise: 10% of the tax or ₹10,000, whichever is higher.

With fraud (74, or 74A fraud):

Paid tax, interest and penalty	Penalty
Before the notice	15%
Within 30 days of the notice (60 days under 74A)	25%
Within 30 days of the order (60 days under 74A)	50%
Later	100%

If an appellate authority holds that fraud is not proved, the demand is reworked under the non-fraud provisions.

The section 128A waiver (closed)

For demands under section 73 for 2017-18, 2018-19 and 2019-20, interest and penalty were waived if the full tax was paid by 31 March 2025 and an application was filed in SPL-01 or SPL-02 within the window, which closed in 2025. Those who applied should keep the order, and withdraw any pending appeal on the waived issues.

Before a notice arrives

Most demands start with a scrutiny letter (ASMT-10) or an intimation in DRC-01A. A reasoned reply then, with reconciliations, often settles the matter. See replying to a show cause notice.

Legal basis

Sections 73, 74, 74A and 128A, Central Goods and Services Tax Act, 2017

Official sources

Work it out for your own figures with our calculator: GST interest.

By CA Ameesh Gupta, FCA, DISA (ICAI) | Last reviewed: 8 November 2026. General information, not advice on your facts: the law changes and outcomes depend on the details of each case.