GST Notice: Reasons & Types

GST notice is sent by the tax authorities to the taxpayers. There are numerous reasons for the issuance of notice under goods and services tax. There are different types of notices like scrutiny notices, show cause notices or demand notices. The intensity of default or action required will determine the purpose of the notice issued.

The most common reasons for issuing GST notices are:

• A scrutiny notice is issued for a mismatch of information between GSTR 1 and GSTR 3B.
• The difference in input tax credit in GSTR 3B to GSTR 2A.
• Delay in filing of GSTR 1 with GSTR 3B more than six months.
• Declarations made on the e-way bill portal are not consistent
• Not reducing the prices of the products by the taxpayer. This practice is known as profiteering and there are several measures for anti-profiteering.
• Issuing show cause notice when GST is not paid or shortly paid
• Issuing show cause notice when GST is wrongly refunded
• Not availing of input tax credit or wrongly availed.
• Inconsistency of reporting of exports in GSTR 1 with the information provided on ICEGATE.

The various types of GST notices are given as follows:

1. GSTR 3A – Notice for Default in non-filing of GST returns by GSTR 1 or GSTR 3B or GSTR 4 or GSTR 8. The time limit for response is within fifteen days from the date of notice received.

2. CMP 05 – SCN issued for questioning the eligibility of a composition dealer. The time limit for replying is within fifteen days from the date of notice received.
3. REG 03 – While verifying the application, a clarification for information with documents is required. This is applicable for amendment of registration. The time limit for response is within seven days from the date of notice received.
4. REG 17 – The SCN should not be canceled for reasons in the notice. The time limit for response is within seven days from the date of notice received.
5. REG 23 – The SCN cancellation of GST is revoked. The time limit for response is within seven days from the date of notice received.
6. REG 27 – When the migration into GST from VAT.
7. PCT 03 – The SCN is issued for misconduct by the GST taxpayer. The time limit for a response is as prescribed in the notice.
8. RFD 08 – The GST Notice for the refund is not made to the applicant
9. ASMT 02 – Seeking additional information for provisional assessment. The time limit for response is within fifteen days from the date of notice received.
10.  ASMT 06 – Additional information for final assessment for GST. The time limit for response is within fifteen days from the date of notice received.
11.  ASMT 10 – A scrutiny notice for any limitation in the return after scrutiny with tax and interest. The time limit for a response as prescribed in the notice or within thirty days from the date of service of notice.
12.  ASMT 14 – SCN for assessment under section 63 for reasons for performing assessment based on the best judgment. The time limit for response is within fifteen days from the date of notice received.
13.  ADT 01 – Notice for audit under section 65. The time limit for a response is as prescribed.
14.  RVN 01 – A notice issued under section 108 by the revisional authority before passing the revision order. The time limit for response is within seven days from the date of notice received.
15.  Notice of inquiry by Directorate of Anti-profiteering – In case of benefit of ITC has not been passed to the recipient. The time limit for a response is as prescribed.
16.  DRC 01 – A GST Notice is issued for the demand of tax paid shortly or unpaid without an intention to defraud. The time limit for response is within thirty days from the date of notice received.
17.  DRC 10 and DRC 17 – A notice issued of the auction for order of demand is given for order for recovery. The time limit for response is as specified by the notice before the sale or the last day of the auction.
18.  DRC 11 – The notice is issued to the successful bidder. The time limit for response is within fifteen days from the date of the auction.
19.  DRC 13 – A notice is issued for recovery of outstanding tax from a third party.
20.  DRC 16 – A notice was issued for the attachment and sale of immovable goods under section 79.

Conclusion

The taxpayer must reply to the issued notice within the stipulated time. A representative can be authorized on behalf of the taxpayer for managing GST-related issues.