GST NOTICE

With the structure of GST legislation being centred around self-assessment and self-certification by the taxpayer, and with the focus on procedure-based legislation, it was important for the Government to bring out provisions of law to seek both proactive and reactive attention of the taxpayer in matters relating to compliances. With focus on e-governance and digitalisation, the need to have these incorporated in the system was also the need of the hour. Ability, Agility and Accuracy were the 3 Aces required.

In order to achieve this, the overall structure underwent a revamp to include not only inform the taxpayers of the defaults, but also sending reminders to caution taxpayers of any default being noticed. It also included cases where regular information was to be sought from the taxpayers.

Notices under GST are nothing but a communication by the GST Authorities. A notice issued, depending upon the purpose or gravity of default or action required from the taxpayer, can be called by different names e.g., Show Cause Notice (SCN), Scrutiny Notice or Demand Notice.

A taxpayer must act or reply to such notices within the time limit specified in the notice. Any failure to reply to such notice can land the taxpayer in a legal soup. In such contingency, the authorities can proceed to impose penal provisions, including and not limited to penalty as well as prosecution.

REASONS FOR GST NOTICES

Some of the reasons of receiving GST notice are:

• Fail to obtain GST Registration
• Delay in filing GSTR-1 and GSTR-3B for more than six consecutive months
• Mismatch between GSTR-1 and GSTR-3B
• Varying declaration in GSTR-1 and e-way bill portal
• Mismatch in Input claimed in GSTR-3B and GSTR-2A
• Non-payment of GST or short payment of GST with or without intent to defraud
• GST Refund wrongly claimed with or without intent to defraud
• Anti-Profiteering
• Information return which was required to be furnished before tax authorities, but not submitted within the stipulated time.

MODES OF SENDING GST NOTICES

There are different means of communicating the notice by the Department as stated under Section 169(1) of the CGST Act, 2017. The different modes of sending notices are as follows:

• Hand delivered either directly or through a messenger
• By courier, registered post or through speed post addressed to the last known business place of the taxpayer.
• By Communicating through email address
• Making it available on GST Portal
• By publishing in a regional newspaper that is circulated in the locality of the taxpayer based on the last known place of his residence.
• If none of the above means were useful, then it can be affixed at some prominent place at the taxpayer last known place of business or residence
• If the last resort is not found reasonable than the notice will be placed on the notice board of the office of the concerned officer or authority.

Thus, the taxpayer need not act upon the notice or communication if it is received in any other modes apart from what is notified by GST law from time-to-time.

TYPES OF NOTICES UNDER GST LAW

Name of the Form – Notice	Description	Time Limit to respond
GSTR-3A	Default Notice for not filing GST Returns in GSTR-1 /3B/4/8	15 days from the date of receiving the notice
CMP-05	Show cause notice- Questioning the eligibility of composition dealer	15 days from the date of receiving the notice
REG-05	A notice for clarification for the information provided during GST registration and also amendment of GST Registration	Within 7 working days from the date of receiving the notice
REG-17	Show cause notice – why GST registration should not be cancelled	Within 7 working days from the date of receiving the notice
REG-23	Show cause notice – why cancellation of GST registration must be revoked	Within 7 working days from the date of receiving the notice
REG-27	In case of migration to GST from VAT, if application not made after obtaining provisional registration or not giving correct or complete details	Nothing prescribed
PCT-03	Show cause notice – misconduct by GST Practitioner	Within the time prescribed in the show cause notice
ASMT-02	Notice for seeking additional information for provisional assessment under GST	Within 15 days from the date of service of this notice
ASMT-06	Notice for seeking additional information for Final assessment under GST	Within 15 days from the date of receipt of this notice
ASMT-10	Scrutiny Notice – for intimating discrepancies in the GST return along with tax, interest and any other amount payable in relation to such discrepancy	Within the time prescribed in the show cause notice or a maximum time of 30 days from the date of service of such notice
ASMT-14	Show Cause Notice for assessment under section 63	Within 15 days of notice
ADT-01	Notice for conducting audit under Section 65 by tax authorities	Within the time prescribed in the notice
RVN-01	Notice under section 108	Within 7 working days from the date of service of the notice
Notice of Enquiry by Directorate of Anti-profiteering	Where the supplier has not passed on the benefit of ITC or reduced GST rates to the recipient/consumer	As may be specified in the notice
DRC-01	Show cause Notice for Demand of Tax- Is issued for demanding tax paid shortly or not paid, served along with statement of details in DRC-02	Within 30 days of receipt of the notice
DRC-10 and DRC-17	Notice of Auction of Goods under section 79(1)(b) of the Act	As may be specified in notice before the sale. Note that the last day of the bid or the last day of the auction cannot be before 15 days from the date of issue of the notice
DRC-11	Notice to successful bidder	Within 15 days from the date of auction
DRC-13	Notice of Recovery of outstanding tax from a third person	NA
DRC-16	Notice for attachment and sale of immovable/movable goods/shares under section 79	NA

REPLY TO NOTICES AND CONSEQUENCES OF NOT REPLYING

Reply to GST notice can be submitted online on the GST portal. While submitting the reply for notice taxpayer can either use his own digital signature or authorised representative signature. But such reply can be submitted only when the taxpayer has paid the required tax liability or interest in the requisite form and manner as per the GST law.

However, if the taxpayer does not respond to the GST notice within the prescribed time, the taxpayer will be liable for further proceedings and penalties as per the demand of each case under the GST Law.

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