GST Section 73 Notice Deadline: 30 September 2026 for FY 2022-23
The CBIC must issue Show Cause Notices under GST Section 73 for FY 2022-23 by 30 September 2026. After this date, non-fraud recovery becomes time-barred. Businesses with unresolved ITC disputes, refund demands, or audit exposure must act now to prepare defences and verify proper notice service.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Section 73(2) and Section 73(10) of the CGST Act)), 2017 — Effective: ongoing. Source: CBDT/CBIC guidance and High Court rulings (Gauhati HC and Delhi HC, August 2026). Last reviewed by CA Harun Raaj: August 2026.
If your business has unresolved GST disputes, pending ITC reversal demands, or outstanding reconciliation differences for Financial Year 2022-23 (April 2022 to March 2023), mark 30 September 2026 in your calendar. This is the last date on which the proper officer can issue a statutory Show Cause Notice (SCN) under Section 73 of the CGST Act, 2017 for that financial year. After this date, recovery for FY 2022-23 in non-fraud cases becomes time-barred—unless an SCN has already been issued.
Why 30 September 2026 Is a Hard Deadline
Section 73(10) of the CGST Act, 2017 requires the proper officer to pass an order within 3 years from the due date for furnishing of the Annual Return for the financial year in question.
Section 73(2) mandates that the SCN must be issued at least 3 months before the order deadline.
Timeline for FY 2022-23:
- GSTR-9 (Annual Return) due date: 31 December 2023
- 3 years from 31 December 2023 = 31 December 2026 (order deadline)
- SCN must be issued at least 3 months before order deadline: 30 September 2026 (SCN deadline)
An SCN for FY 2022-23 issued after 30 September 2026 is time-barred and challengeable before the High Court.
Key point: No Show Cause Notice can be validly issued under Section 73 for FY 2022-23 after 30 September 2026; any notice issued thereafter is legally unenforceable in non-fraud cases.
Section 73 vs. Section 74: Why the Distinction Matters
The GST Act provides different limitation periods depending on whether fraud or wilful misstatement is involved:
Section 74A does not apply to FY 2022-23. Businesses filing for FY 2022-23 must continue to operate under the Section 73 and Section 74 framework.
Form DRC-01 Is Not a Statutory Show Cause Notice
The Gauhati High Court, in rulings confirmed as recently as August 2026, held that Form GST DRC-01 (Summary of Show Cause Notice) cannot substitute the statutory SCN required under Section 73(1). A valid SCN must contain specific allegations, the amount of tax involved, and the documents relied upon.
Receiving a DRC-01 alone does not mean the proper officer has issued an SCN. The Delhi High Court also held in August 2026 that notices uploaded only on the GST portal after a business ceased operations were challengeable, reinforcing the importance of proper notice service and documentary evidence of receipt.
Who Should Prepare Now
Businesses likely to receive SCNs before 30 September 2026 for FY 2022-23 include:
- Taxpayers with GSTR-2B vs. GSTR-3B ITC differences
- Businesses with pending GSTR-2A/2B mismatch disputes
- Exporters with pending refund scrutiny for FY 2022-23
- Taxpayers under GST audit (Form GST ADT-01) for FY 2022-23
- Taxpayers who filed GSTR-3B late after GSTR-3A non-filing notices
Practical Impact: A Real Scenario
Consider a trading business (Pune-based, ₹5 crore turnover, FY 2022-23) that claimed ITC of ₹8 lakh based on GSTR-2A. Those invoices were subsequently not fully reflected in GSTR-2B. If the proper officer issues an SCN before 30 September 2026 demanding ITC reversal + 18% interest (Section 50, CGST Act) + 10% penalty (Section 73(8)), the business must contest it. However, if the SCN is issued on 1 October 2026, it is time-barred and the business has strong grounds for challenge.
Steps to Take Now
1. Self-audit FY 2022-23 ITC
Reconcile GSTR-3B ITC claimed against GSTR-2B. Identify and document differences. Prepare explanations for supplier-driven mismatches.
2. Provision for potential demand
If ITC differences exist and no SCN has been received, provision for the potential demand (tax + 18% interest under Section 50 + 10% or 15% penalty).
3. Check GST audit status
If a Form GST ADT-01 (audit notice) was received for FY 2022-23, confirm the audit must conclude before 30 September 2026 for any SCN to be valid.
4. Verify DRC-01 vs. statutory SCN
If you received a DRC-01 for FY 2022-23, confirm whether a formal SCN under Section 73(1) was also issued and properly served. If not, flag this to your CA immediately.
5. Respond to pending SCNs promptly
If you already have an SCN for FY 2022-23, the order deadline is 31 December 2026. File a detailed reply before that date.
I'm CA Harun Raaj, Visakhapatnam. If your business faces GST notice exposure or ITC disputes for FY 2022-23, reach out to discuss your position.
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See Also
Frequently Asked Questions
If I have not received any notice for FY 2022-23, am I safe after September 30, 2026?+
For non-fraud cases under Section 73, yes—the SCN limitation expires on 30 September 2026. If no SCN has been issued by that date, new proceedings under Section 73 for FY 2022-23 are time-barred. However, Section 74 (fraud/suppression) proceedings can still be initiated until 30 September 2028.
Does the September 30, 2026 deadline apply to all GST registrations—CGST, SGST, and IGST?+
Yes. The CGST Act limitation period mirrors in SGST Acts of all states (SGST Acts are parallel legislation). The same Section 73 time limits apply across all GST components.
I received a DRC-01 for FY 2022-23 but no formal Show Cause Notice. What should I do?+
Consult your Chartered Accountant immediately. Multiple High Courts have held that Form DRC-01 does not constitute a valid SCN under Section 73(1). If the proper officer does not issue a formal SCN by 30 September 2026, you may have grounds to challenge any subsequent demand order.
Does Section 74A (Finance Act 2024) change anything for FY 2022-23 cases?+
No. Section 74A applies from FY 2024-25 onwards only. FY 2022-23 cases continue under Section 73 (3-year limitation) and Section 74 (5-year limitation for fraud cases).
What is the deadline for the proper officer to pass an order if an SCN is issued before September 30, 2026?+
The order must be passed by 31 December 2026 under Section 73(10) of the CGST Act, 2017. This is 3 years from the GSTR-9 due date of 31 December 2023.
If I am under GST audit for FY 2022-23, does the September 30, 2026 deadline still apply?+
Yes. If a Form GST ADT-01 (audit notice) was received for FY 2022-23, the audit must conclude and any SCN must be issued before 30 September 2026 for the notice to be valid under Section 73.
What should I do if I have ITC differences between GSTR-2A and GSTR-2B for FY 2022-23?+
Reconcile the differences immediately, document the reasons (supplier discrepancies, invoice corrections, or denials), and prepare explanations. If no SCN has been received, provision for potential demand including tax, 18% interest, and penalties.
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