• Jul 29

What is GST Notice?

GST Notice under the Goods and Services Tax (GST) law are a medium used by tax authorities to communicate to taxpayers. GST notices are usually sent as a word of caution for any defaults noticed by authorities specifically in GST compliance, or to collect more information from taxpayers

2. Common Reasons for Issue of GST Notices by GST Department

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

  • Issuance of scrutiny notice due to a mismatch of details furnished between GSTR 1 and GSTR 3B
  • Difference in amounts of ITC claimed in GSTR 3B as compared to GSTR 2A & GSTR 2B
  • Delayed filing of  GST Return (GSTR-1) and then consecutively delayed filing of GSTR 3B for over 6 months
  • Inconsistent declarations made in GSTR 1 and the e-way bill portal
  • Issuance of SCN when GST is not paid by the taxpayer or is paid as short payment, either with or without any fraudulent intention
  • Issuance of SCN when GST is wrongly refunded, either with or without any fraudulent intention
  • Wrongly availed or utilized ITC
  • When a business which is liable to register under GST has not been registered, and tax and other liabilities have not been discharged under the GST Act
  • Exports reported inconsistently in Form GSTR 1 with the required information lodged accurately on ICEGATE
  • When any additional information is required by authorities related to the records maintained by the taxpayer
  • When tax authorities have to conduct an audit
  • When the information return which was required to be filed before GST authorities has not been submitted within the specified period of time

Types of GST Notices 

  • GSTR-3A:- Default notice for taxpayers who have not filed GST returns in GSTR-1, GSTR-3B, GSTR-4, or GSTR-8
  • CMP-05:- Show Cause Notice (SCN) questioning the taxpayer’s eligibility to be a composition dealer
  • REG-03:- Sent while verification of GST registration application to ask the taxpayer to clarify details entered in the application and the documents provided. The same notice form is applicable for amending the GST registration.
  • REG-17:- SCN asking justification as to why the GST registration of taxpayer should not be canceled for the reasons mentioned in the notice.
  • REG-23:- SCN asking justification as to why the cancellation of taxpayers GST registration should be revoked for the reasons mentioned in the notice.
  • REG-27:- For migration of taxpayers from VAT to GST regime, a notice may be issued within the prescribed time in REG-26 for not making an application after obtaining provisional registration, or for not providing complete or accurate details in it.
  • PCT-03:- SCN for the GST practitioners misconduct.
  • RFD-08:- SCN asking why GST should not be refunded to the taxpayer
  • ASMT-02:- Notice seeking additional information for carrying out provisional assessment under GST
  • ASMT-06:- Notice seeking additional information for carrying out final assessment under GST for applicants of provisional assessment.
  • ASMT-10:- Scrutiny notice intimating discrepancies in filed GST returns after scrutiny along with any payable tax, interest, or other amounts related to such discrepancy
  • ASMT-14:- SCN for assessment under Section 63 reasons for assessing based on best judgment
  • ADT-01:- Notice for an audit to be conducted by a GST authority under Section 65
  • Enquiry Notice by Directorate of Anti-profiteering:- When supplier does not pass the benefit of ITC or reduced GST rates to the supplier, all interested parties get a notice asking for additional information
  • DRC-01:- SCN issued for demanding unpaid or shortly paid tax with or without fraudulent intention. Served along with details statement in DRC-02.
  • DRC-10 & DRC-17:- Notice for auctioning goods under Section 79(1)(b) – a reference to the demand order will be given, being the order of recovery through specified officer under Section 79, Or, Recovery by executing the decree.
  • DRC-13:- Notice for recovering outstanding tax from a third person.
  • DRC-16:- Notice for attachment and sale of movable/immovable goods/shares under Section 79.

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Frequently Ask Questions (FAQ's)

A: Notices under GST are communications by the GST Authorities. A notice so 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: As per Section 73(10), the said order must be issued within 3 years from the due date of furnishing the annual return for the relevant financial year to which the tax relates.
A: What is GST audit notice? GST Departmental Audit is the process of examining a taxable person's records, returns, and other documentation. The goal is to ensure that the turnover is declared, taxes paid, refunds claimed, and input tax credits claimed are valid, as well as to check compliance with GST regulations.
A: An offender has to pay a penalty amount of tax evaded/short deducted etc., i.e., 100% penalty, subject to a minimum of Rs. 10,000. For the 21 offences above, for fraud cases, the penalty will be 100% (minimum Rs. 10,000).
A: Any reply to the GST notices can be submitted online on the GST portal.
A: After receiving a notice in Form GSTR-3A, the taxpayer must file return in Form GSTR-3B or any other return, as the case may be, within 15 days of issue of such notice and discharge the tax liability along with late fee and interest, if any.
A: A notice in FORM GSTR-3A shall be issued, electronically, to a registered person who fails to furnish return under section 39 or section 44 or section 45 or section 52.
A: A Demand Notice under the Goods and Services Tax (GST) regime is a formal notice issued by the tax authorities to an individual or a company when they believe that the individual or company owes taxes under GST.
A: The proper officer may, by a notice in Form GST DRC-13, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government.
A: Below are the steps to reply to a scrutiny notice: Step 1: Select the 'Replies' tab on the case details page to view all the replies filed with the tax department. Step 2: To add a reply, click 'Notice'. Step 3: Enter your reply and payment details if any.
A: Some professionals believe that because notice pay recovery occurs in the course of employment, it is also exempt from GST.
A: The DRC – 01, according to Rule 142 (1), shall be served on the petitioner electronically along with the show cause notice issued under section 74(1) of the Act (which cannot be issued electronically).
A: DRC-07 is the summary of all orders. Every order which ultimately ends up in demand creation, liability is created through DRC-07.