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GST Notices

Explore all the details you need about GST Notices, tailored for your needs.

GST Notices

GST Notices are official communications from GST Authorities to taxpayers. They serve to remind or caution taxpayers about detected defaults in GST compliance or to request additional information. Responding promptly to these notices within the specified timeframe is crucial. Failure to do so may result in legal consequences such as prosecution or penalties for willful default. Hence, taxpayers must handle GST notices diligently and ensure compliance.

At Solocorp, our team of experts is dedicated to helping you navigate the complexities of GST notices. Whether you've received a notice or anticipate one, we're here to assist you in preparing and submitting your response effectively.

What is GST Notice?

Notices under GST serve as official communications from GST Authorities to taxpayers. These notices serve various purposes, including reminders of detected defaults in compliance with GST laws or requests for additional taxpayer information. They are crucial in maintaining tax compliance and ensuring the proper functioning of the GST system.

These notices may go by different names, the specific type of notice depends on factors such as the nature of the default detected or the actions required from the taxpayer. Common grounds for receiving notices include failure to register under GST when required by law, late or non-filing of GST returns, underpayment or non-payment of GST, and incorrect claims of Input Tax Credit. Upon receiving a notice, taxpayers must respond promptly within the specified timeframe.

Types of GST Notices

Taxpayers in India may receive various notices under the Goods and Services Tax (GST) system, issued by tax authorities for different purposes. Understanding these notices is crucial for timely compliance.

Show Cause Notice (SCN)

Issued when tax authorities suspect a violation of GST laws or incorrect reporting of transactions. Taxpayers must provide a valid explanation within a specified period.

Demand Notice

A notice specifying tax liability due from the taxpayer, along with any applicable interest or penalties, as determined by the tax authorities.

Scrutiny Notice

Sent when tax authorities examine GST returns or documents to ensure compliance. It may involve a detailed review of records and transactions.

Assessment Notice

Issued after tax authorities assess GST liability based on filed returns and other documents. It specifies the final tax amount, including adjustments or corrections.

Recovery Notice

Issued if a taxpayer fails to pay the tax liability as per the demand notice. It details the outstanding amount and recovery steps, including asset or bank account attachment.

Notice for Personal Hearing

Summons the taxpayer for a personal hearing to address discrepancies or issues identified during scrutiny or assessment.

Common Reasons for Receiving GST Notices

Below are the primary reasons why GST authorities might issue notices:

Discrepancies between details reported in GSTR-1 and GSTR-3B often lead to scrutiny notices.
Variances in Input Tax Credit (ITC) claims in GSTR-3B compared to GSTR-2B/2A.
Failure to file GSTR-1 and GSTR-3B for over six months consecutively.
Mismatches in information declared on GSTR-1 and the e-way bill portal.
Prices not lowering after a GST rate cut, violating CBIC mandates on profiteering and consumer rights.
Non-payment or underpayment of GST, potentially resulting in a show cause notice (SCN), whether or not fraud is involved.
Inappropriate or fraudulent claims for GST refunds, leading to the issuance of a show cause notice (SCN).
Incorrect availing or use of Input Tax Credit (ITC).
Operating without GST registration when required, thereby failing to meet tax and compliance obligations under the GST Act.
Reporting inconsistencies for exports in GSTR-1, especially when shipping or export bills lodged in ICEGATE are not reflected in GSTR-1.
Failure to provide required record-keeping information to tax authorities.
Undergoing audits conducted by tax authorities.
Not submitting information returns to tax authorities within the prescribed timeframe.

Comprehensive Overview of GST Notices and Required Responses

Sl No	Name of the Form-Notice	Description	Reply or Action to be Taken	Time Limit to Respond	Consequence of Non-response
1	GSTR-3A	Default notice to non-filers of GST returns in GSTR-1, GSTR-3B, GSTR-4, or GSTR-8	File the pending GST Returns along with any late fees and interest on the GST liability	15 days from receipt	Tax assessed on available information; Penalty of Rs. 10,000 or 10% of tax due, whichever is higher
2	CMP-05	Show cause notice questioning the eligibility for the composition scheme	Justify eligibility for the composition scheme	15 days from receipt	Penalty under section 122 and CMP-07 order denying composition scheme benefits
3	REG-03	Notice for clarification or additional documents at the time of GST registration or amendment	Provide clarification or documents in REG-04	Within 7 working days from receipt	Application rejection informed in REG-05
4	REG-17	Show cause notice for potential GST registration cancellation	Submit reasons in REG-18 against cancellation	Within 7 working days from receipt	Cancellation of GST registration in REG-19
5	REG-23	Show cause notice for revocation of GST registration cancellation	Submit reply in REG-24	Within 7 working days from receipt	Cancellation of GST registration revocation
6	REG-27	Notice for GST migration issues for VAT regime taxpayers	Apply in REG-26 and present before tax authority	Not prescribed	Cancellation of provisional registration in REG-28
7	PCT-03	Show cause notice for GST practitioner misconduct	Respond within the notice's prescribed time	Within the notice's prescribed time	Cancellation of GST practitioner license
8	RFD-08	Show cause notice for potential GST refund rejection	Respond in RFD-09	Within 15 days from receipt	GST refund application rejection in RFD-06
9	ASMT-02	Notice for additional information for provisional assessment	Provide information in ASMT-03	Within 15 days from notice service	Provisional assessment application rejection
10	ASMT-06	Notice for additional information for final assessment (post-provisional assessment)	Respond within 15 days	Within 15 days from receipt	Final assessment in ASMT-07 without taxpayer input
11	ASMT-10	Scrutiny notice for discrepancies in GST return	Provide explanations in ASMT-11	Prescribed time in notice or a max of 30 days from service	Assessment based on available information, potential prosecution and penalty
12	ASMT-14	Show cause notice for best judgment assessment under section 63	Provide written reply and appear before authority	Within 15 days from notice	Unfavorable assessment order in ASMT-15
13	ADT-01	Notice for audit by Tax authority under Section 65	Appear in person or produce records as directed	Within the notice's prescribed time	Presumed absence of books of account, initiating proceedings
14	RVN-01	Revisional authority notice under section 108 before revising appeal orders	Respond and/or appear as directed	Within 7 working days from service	Decision based on available records and merits, ex parte
15	Notice of Enquiry by Directorate of Anti-profiteering	Inquiry for not passing on ITC or reduced GST rates benefits	Cooperate and provide evidence	As specified in the notice	Ex parte proceedings based on available evidence
16	DRC-01	Demand of Tax show cause notice for underpaid or unpaid tax	Pay demanded tax amount in DRC-03, with interest and penalty if applicable. Use DRC-06 for responses	Within 30 days from receipt	Higher penalty or prosecution within three years from annual return due date
17	DRC-10 & DRC-17	Notice of Auction of Goods under section 79 for recovery	Pay outstanding demand per DRC-09	Specified before sale, not before 15 days from notice issue	Proceed to e-auction and sale
18	DRC-11	Notice to successful auction bidder	Pay total bid amount	Within 15 days from auction date	Possible re-auction by officer
19	DRC-13	Notice for tax recovery from a third person	Deposit specified amount and respond in DRC-14	Not applicable	Considered a defaulter for specified amount, subject to prosecution and penalties
20	DRC-16	Notice for attachment and sale of goods/shares under section 79	Prohibited from transferring/creating charge on goods; must comply with notice	Not applicable	Prosecution and/or penalties for contravention

Reply to GST Notices

To navigate the process of responding to GST notices efficiently, follow these essential steps:

Review the Notice: Carefully read the GST notice to understand the issue or discrepancy highlighted by the tax authorities.
Gather Documentation: Collect all relevant documents, records, and evidence that pertain to the matter raised in the notice.
Access the GST Portal: Log in to the GST portal to prepare your response. Ensure you have the necessary login credentials and access rights.
Use Digital/E-Signature: Authenticate your submission with your digital signature or e-signature, as authorised.
Clear Dues: If the notice involves tax or interest dues, ensure these are paid according to the specified procedure before responding.
Submit Your Response: File your reply on the GST portal, attaching all necessary documentation and evidence to support your case.
Keep Records: Maintain a detailed record of all communications, submissions, and payments related to the GST notice for future reference.

Consequences of Non-Response to GST Notices

Failure to reply to GST notices within the specified time frame subjects the taxpayer to penalties and further legal actions following GST regulations based on the individual circumstances of each case (refer to the table provided above).

Choose Solocorp for Simplified GST Solutions

Solocorp stands out as your trusted partner in navigating the complexities of GST compliance. By facilitating effortless GST registration and meticulous GSTR filing, we proactively minimise the risk of receiving unwelcome GST notices. Should you receive any notices, there's no cause for concern. Our dedicated team of GST experts is equipped to handle the situation with precision and expertise. Our experts will craft and submit a comprehensive and compliant response to any GST notices on your behalf, ensuring that your business remains in good standing with minimal disruption. With Solocorp, you gain more than just a service provider; you gain a partner committed to safeguarding your business's compliance and success.