GST Notice

GST Notice in the goods and services tax is a medium of communication from tax authorities to taxpayers. It is in the form of caution for any defaults noticed by tax authorities regarding GST compliances for collecting extra information from taxpayers.

The introduction of common reasons for sending a notice is default committed by the taxpayer which includes delayed filing of GST returns, no registration is made under GST. There are different forms of notices such as scrutiny notices, show cause notices (SCN) or demand notices.

The purpose of the notice determines the intensity of the committed default and the action required. The notice must be replied to within the stipulated time. There is legal action taken in case the taxpayer fails to do so.

Common Reasons for Issuance of GST Notice

The most common reasons for the issuance of a notice of GST are given below:

• Issuance of scrutiny notice due to a mismatch of details given between GSTR 1 and GSTR 3B.
• The difference between the amount of Input Tax Credit (ITC) claimed in GSTR 3B in comparison to GSTR 2A.
• Delayed filling of GSTR 1 of GSTR 3B for more than 6 months.
• The inconsistent announcement is provided in GSTR 1 and the e-way bill website.
• The prices are not reduced after reducing the GST rates notified by the Central Board of Indirect Taxes and customs (CBIC).
• Issuance of SCN or GST notice when tax is not paid by the taxpayer is paid for short payment.
• Issuance of show cause notice when GST is not correctly refunded.
• Wrongly availed or utilized ITC.
• When a business is liable to register under GST has not been registered and tax and other liabilities.
• Exports reported inconsistently in Form GSTR 1 with information lodged accurately on ICEGATE
• When any additional details are required by authorities related to the records maintained by the taxpayer
• When tax authorities conduct an audit as required under the GST law.
• When the information return required filled before GST authorities not been submitted within the specified time.

Reply to GST Notice Online

The process of notices under GST the following steps:

1. For New Registration

• Click on the ‘Register’ option
• Click on the option of temporary reference number (TRN).
• In the TRN field, Enter the ‘TRN’ received.
• Click on the Proceed button
• Enter OTP received on mobile or email address by the taxpayer.

Important Note:

• OTP is sent to the mobile number and the email address is the same.
• In case, an OTP is invalid and click on resend the OTP.

2. For Existing Registration

• Login to the GST official portal using your username and password
• Click on services and ‘Registration’ and ‘Application for filing clarifications’
• In the GST notice vide reference number field, Enter the reference no. on the notice received for filing the clarifications. In the application reference number (ARN), enter the receipt to the application submitted.
• Click on the ‘Search’ button
• In the modifications to the registration application option. There are two options including ‘Yes’ or ‘No’.
• For ‘Yes’ in case of an original application in the editable mode for notice is issued. You can edit the details and upload the required documents.
• When there is any additional information, you can select ‘No’ and enter the information.
• Apply with DSC or Submit with E-sign as applicable.

Submit the DSC as follows:

• Click on the Submit with DSC
• Click on Proceed option
• Select the certificate and then click on the sign option
• Enter the PIN for attaching DSC

GST Notice Reply Format

The following points must be noted for the GST show cause notice reply:

• The date of receipt of the notice and the date of the notice can be different.
• It has to be received and then replied to for SCN.
• In case the service is time-barred, it can be replied to with evidence.
• SCN is always in writing.
• SCN must contain the amount demanded. The amount of penalty should be given.
• It should be issued for a prescribed period. In case of demand is raised, paid and admitted.
• It must be replied to within the period in the notice and replied to accordingly.
• The extension of time can be granted and GST notice status can be viewed.
• A list of evidence of reply can be submitted.
• When a detailed and convincing reply to SCN is sent. There is an option of seeking a personal hearing for alteration or amendment or modification to reply.
• When there is a penalty or demand is confirmed is revoked. Alternative measures for relief can be provided.
• The order against SCN can be appealed in higher courts.
• Professional guidance can be taken for drafting a reply to SCN.
• The arguments build the foundation for a properly defended case.
• The arguments build the foundation for a properly defended case.

Types of GST Notices

Types of GST Notices

• GSTR 3A – Default notice for non-filing of GST returns in GSTR 1 or GSTR 3B or GSTR 4 or GSTR 8.
• CMP 05 – SCN issued for questioning the eligibility of a composition dealer
• REG 03 – While verifying the application, a clarification for information with documents is required. This is applicable for amendment of registration.
• REG 17 – The SCN should not be cancelled for reasons in the notice.
• REG 23 – The SCN cancellation of GST is revoked.
• REG 27 – When the migration into GST from VAT.
• PCT 03 – The SCN is issued for misconduct by the GST taxpayer.
• RFD 08 – The GST Notice for the refund is not made to the applicant
• ASMT 02 – Seeking additional information for provisional assessment.
• ASMT 06 – Additional information for final assessment for GST.
• ASMT 10 – A scrutiny notice for any limitation in the return after scrutiny with tax and interest.
• ASMT 14 – SCN for assessment under section 63 for reasons for performing assessment based on the best judgement
• ADT 01 – Notice for audit under section 65
• RVN 01 – A notice issued under section 108 by the revisional authority before passing the revision order.
• Notice of enquiry by Directorate of Anti-profiteering – In case of benefit of ITC has not been passed to the recipient.
• DRC 01 – A GST Notice is issued for the demand of tax paid shortly or unpaid without an intention to defraud.
• DRC 10 and DRC 17 – A notice issued of the auction for order of demand is given for order for recovery.
• DRC 11 – The notice is issued to the successful bidder
• DRC 13 – A notice is issued for recovery of outstanding tax from a third party.
• DRC 16 – A notice was issued for the attachment and sale of immovable goods under section 79.

Download Notice Issued by Tax Authorities

The process to download the notice is given in the following steps:

Step 1 : Visit the GST portal.

Step 2 : Click on the ‘GST Login’ option with username and password. You cannot download the GST notice without login.

Step 3 : After login, click on the ‘Services’ and ‘User Services’ and then ‘View Notices and Orders’. The notice issued by tax authorities will be displayed for the last year

Step 4 : Click on the download link for downloading the notice and orders.

Consequences of No Response to the Notice

The response to the notice can be submitted on the online GST portal with the help of a digital signature. Any requirement of tax or payment of interest should be paid in the form and manner given by GST law. A practising-chartered accountant is authorized to the management of issues related to the GST notice. This allows a taxpayer to authorize taking action on his behalf.

In case, a taxpayer doesn’t respond to the issued notice within the stipulated time then further proceedings for each case are applicable.