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GST Notices:
Types of GST Notices & How to Reply to Them?
GST Notices are official communications by GST Authorities to taxpayers. These are sent to the taxpayers specifically to remind or caution them of any defaults being noticed, specifically for not following the GST laws or to request additional information. Responding promptly to these notices within the specified time limit is crucial. Failure to do so, may leads to legal consequences such as prosecution or penalties for willful default etc. Hence, taxpayers must handle GST notices diligently and ensure compliance.
At DisyTax, our professional 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.
Contact us today for professional guidance and file a quick reply!
What is GST Notice?
Notices under GST serve as official communications by GST Authorities to taxpayers.
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 includes 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 etc. Upon receiving a notice, taxpayers must respond promptly within the specified time limit.
Types of GST Notices
As mentioned above, in the context of Goods and Services Tax (GST) in India, taxpayers may receive various notices by the tax authorities. Some common types include:
- Show Cause Notice (SCN):-This is issued by the tax authorities to a taxpayer when they suspect that there has been a violation of GST laws or incorrect reporting of transactions. The taxpayer must provide a valid explanation or justification within a specified period.
- Demand Notice:-A demand notice is issued when the tax authorities determine a tax liability due from the taxpayer. This notice specifies the amount of tax due along with any applicable interest or penalties.
- Scrutiny Notice:-A scrutiny notice is sent to a taxpayer when the tax authorities examine the taxpayer’s GST returns or other documents in detail to ensure compliance with GST laws. This may involve a throughout examination of the taxpayer’s records and transactions.
- Assessment Notice:-This notice is issued by the tax authorities after determination of tax liability under GST law. There are various types of Assessment under GST
- Recovery Notice:-If a taxpayer fails to pay the tax liability as per the demand notice, a recovery notice may be issued, specifying the outstanding amount and initiating steps for recovery, including attachment of assets or bank accounts of taxpayer.
- Notice for Personal Hearing:-In certain cases, the tax authorities may summon the taxpayer for a personal hearing to present their case or provide additional information in response to any discrepancies or issues identified during the assessment or scrutiny process.
Taxpayers must respond to these notices promptly and provide accurate information and documents as required by the tax authorities to avoid any adverse consequences, such as penalties or prosecution for non-compliance.
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 lead to a scrutiny notice.
- Variances in Input Tax Credit (ITC) claims in GSTR-3B compared to GSTR-2B/2A.
- Failing 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 are not lowering following a GST rate cut as mandated by the Central Board of Indirect Taxes and Customs (CBIC), constituting profiteering and violating consumer rights to benefit from reduced rates.
- Non-payment or underpayment of GST, potentially leading to a show cause notice (SCN), regardless of fraudulent intent.
- Inappropriate claims for GST refunds, with or without fraudulent intent, attracting a show cause notice (SCN).
- Incorrect availing or use of Input Tax Credit.
- Operating without GST registration when required and not fulfilling tax and other obligations under the GST Act.
- Reporting inconsistencies for exports in GSTR-1, especially when shipping or export bills are lodged in ICEGATE but 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 Types 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 |
How to reply to GST notice online properly?
To navigate the process of responding to GST notices efficiently, follow these essential steps:
Here’s a step-by-step process for replying to a GST notice online:
Step1: Accessing the GST Portal
- Visit the official GST portal
- Log in using your valid GST registration login credentials (username, password, and Captcha).
Step2: Locating the Notice
- Once logged in, navigate to the Dashboard.
- Under Services, select User Services.
- Click on View Additional Notices/Orders.
This section displays all notices issued by the tax department to your taxpayer identification number (GSTIN).
Step3: Reviewing the Notice Details
- Click on the “Document” hyperlink associated with the specific notice you want to respond to. This will download the notice for your reference.
- Carefully review the content of the notice. This includes understanding the nature of the notice, the specific issue raised by the department, and the due date for reply.
Step4: Preparing Your Reply
- Depending on the type of notice, your reply may involve furnishing additional information, clarifying discrepancies, or contesting the department’s claims.
- Gather relevant documents and evidence to support your response. This could include invoices, purchase orders, bank statements, or other documentation that strengthens your case.
- If the notice is complex or requires in-depth analysis, it’s advisable to consult with our IndiaFilings tax professional.
Step5: Submitting Your Reply Online
- Once you have prepared your response, locate the “Reply” button for the specific notice in the “Due date of Reply” column.
- Clicking “Reply” will open a new window to draft your response.
- The system might pre-populate details like the reference number and refund application details (if applicable).
- Carefully draft your reply, ensuring it is clear and concise and addresses all the points raised in the notice.
- Attach any supporting documents you intend to submit along with your reply.
- Once satisfied with your response, digitally sign it using your DSC (Digital Signature Certificate) or e-signature.
- Submit the reply online.
Important Note: Retain a copy of the submitted reply and supporting documents for your records.
For effective replies, DisyTax are here to guide you through the process, ensuring your response is comprehensive and compliant.
Consequences of Non-Response to GST Notices
Failing to respond to a GST Notice issued by the GST Authority can leads to adverse consequences for taxpayers. These consequences may include imposing penalties for non-compliance, potential delays in processing requests or resolving issues, and in severe cases escalation to legal action to recover dues or even cancellation of GST registration. Therefore, taxpayers must take prompt action upon receiving a GST Notice.
How to view or download the Notices issued by the GST officer?
The GST portal provides a convenient way to access notices issued by the GST officer. Here’s a step-by-step instructions:
- Step 1: Access the GST Portal –Visit the official GST portal
- Step 2: Log in with your Credentials –Enter your valid login credentials (username and password) for the GST portal.
- Step 3: Navigate to the “Notices and Orders” Section –You can access notices and orders through two options:
- Option 1: Using the Services Menu
- Click on the Services tab on the dashboard.
- Select User Services from the dropdown menu.
- Choose View Notices and Orders.
- Option 2: Using the Dashboard Button
- Look for a button labelled View Notices and Orders directly on the dashboard. Click on this button.
- Option 1: Using the Services Menu
- Step 4: View and Download Notices –The system will display all notices and orders issued to you by the GST department during the past year. These will be presented chronologically, with the most recent notices appearing first.
Choose DisyTax for Simplified GST Solutions
DisyTax stands out as your trusted partner in navigating the complexities of GST compliance. By facilitating effortless GST registration and meticulous GST Return filing, we proactively minimise the risk of receiving unwelcome GST notices. Our dedicated professional’s expertise in GST is equipped to handle the situation with precision and expertise. With DisyTax, you gain more than just a service provider. DisyTax is committed to safeguarding your business’s compliance and success.
Ready to ensure seamless GST compliance? Contact DisyTax today!