Does the 128A Amnesty Cover Section 74 Fraud Cases Too, or Only Section 73?
GSTZone Desk · Updated 2026
Short answer
No — Section 128A explicitly and specifically excludes Section 74 (fraud) demands. The waiver is available only for Section 73 demands, which by definition are cases WITHOUT fraud, wilful misstatement, or suppression of facts.
In detail
This is a deliberate, clearly stated boundary in the law, not an oversight or a grey area. Section 128A’s relief exists specifically to give taxpayers a clean way out of genuine, honest errors from GST’s early implementation years — it was never intended as a route for deliberate tax evasion cases to also get let off interest and penalty.
There’s exactly one narrow exception where a Section 74 case CAN still access the relief: if, on appeal or in further proceedings, it’s determined that the fraud allegation wasn’t actually established, and the demand gets reclassified as a Section 73 (non-fraud) demand under Section 75(2) — at that point, it becomes eligible for 128A treatment as a genuine Section 73 case.
So if you’re facing a Section 74 notice and are considering whether 128A might help, the real question isn’t about the amnesty scheme at all — it’s about whether the fraud allegation itself actually holds up, since that’s what would need to change first before 128A relief becomes relevant.
GSTZone tip
If you’ve been issued a Section 74 notice but genuinely believe there was no fraud, wilful misstatement, or suppression involved, focus your reply on contesting that specific classification directly — succeeding there does two things at once: it cuts the potential penalty dramatically, and it opens the door to 128A relief that a fraud classification otherwise blocks entirely.
Related questions
Does 128A cover erroneous refund cases?+
No — the section specifically excludes demands relating to erroneous refunds, in addition to excluding Section 74 fraud cases.
What about Section 74A cases for FY 2024-25 onward?+
Section 128A’s relief is tied to the specific period 1 July 2017 to 31 March 2020 under Sections 73/74 — it doesn’t extend to the newer Section 74A regime covering FY 2024-25 onward, regardless of whether a 74A case is fraud or non-fraud.
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