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Section 73 vs Section 74: How to Respond When Fraud Is Alleged in Your SCN
Practical Guide for GST Decision-Making.

A practical response framework to challenge incorrect fraud allegations, reduce penalty exposure, and prepare your hearing strategy.

The first strategic question in any SCN is whether Section 74 is correctly invoked. Allegations of fraud, suppression, or wilful misstatement must be supported by specific facts, not generic wording.

Start with an allegation map. Match each charge in the SCN with documents, returns, and communication history. If the department has not shown intent to evade tax, your reply should explicitly seek reclassification to Section 73.

A strong hearing brief focuses on three things: factual chronology, statutory interpretation, and quantum recalculation. Even where some tax exposure exists, reducing penalty and narrowing demand can materially change the outcome.

Always prepare a hearing note separate from your written reply. Officers often decide based on oral clarity and documentary confidence presented during hearing.

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