Section 75 – General provisions relating to determination of tax
Section 75 of CGST Act, 2017 – General Provisions Relating to Determination of Tax
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Objective of Section 75
Section 75 lays down the general procedural principles to be followed while determining tax liability under Sections 73, 74 and other demand-related provisions.
It ensures:
- Consistency in adjudication
- Protection of taxpayer rights
- Uniform application of limitation
2. Common Notice for Multiple Periods
Section 75(3):
Where a notice is issued for one period,
the proper officer may issue
a common notice
for subsequent periods
on the same grounds.
However, time limits must be complied with for each period separately.
3. Adjustment of Paid Amounts
Section 75(2):
If any amount of tax, interest or penalty
is paid by the taxpayer,
such amount shall be adjusted
against the amount determined.
Double recovery is not permitted.
4. Deemed Conclusion of Proceedings
Section 75(4):
Where proceedings are concluded
under Section 73 or 74,
no further proceedings
shall be initiated
for the same cause of action.
This protects taxpayers from repeated demands.
5. Separate SCN for Fraud and Non-Fraud
Section 75(1):
Where the facts are the same:
- Proceedings under Section 73 (non-fraud)
- Proceedings under Section 74 (fraud)
cannot be initiated simultaneously.
Only one provision can apply based on nature of allegations.
6. Effect of Appellate Orders
Section 75(8):
Where an appellate authority
sets aside or modifies an order,
the proper officer shall give effect
to such order
within the prescribed time.
Fresh proceedings can be initiated only if legally permissible.
7. Limitation When Appellate Proceedings Exist
Section 75(10):
Where proceedings are stayed by court or tribunal,
the period of stay
shall be excluded
while computing limitation.
This ensures fairness to both parties.
8. Requirement of Reasoned Orders
Orders under Sections 73 or 74 must:
- Deal with each contention
- Record findings on facts
- Apply law correctly
Non-speaking orders are unsustainable.
9. Natural Justice Safeguards
Section 75 reinforces:
- Opportunity of personal hearing
- Proper service of notices
- Right to reply
Violation of these principles vitiates proceedings.
10. Section 75 and Best Judgment Assessment
Section 75 principles also apply to best judgment assessments under Section 62.
Procedural fairness remains mandatory.
11. Practical Importance of Section 75
Many GST demands are set aside not on tax merits but on procedural lapses covered under Section 75.
This section is a powerful defence tool.
12. Related Provisions
13. Professional Insight
Section 75 is the procedural shield against arbitrary taxation. Even a valid tax demand can fail if Section 75 safeguards are violated. Strong GST litigation always starts here.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Procedural compliance is as important as tax liability itself.
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