GST Notices are of different types like Show Cause notice, Demand notice, Scrutiny notice and others. These notices are issued to the taxpayers for certain reasons.
Notices Under GST are the way of communication by the GST Authorities. These notices are sent to the taxpayers to remind them of any error noticed while filing GST. Also sometimes GST Authority sends notice -when the movement of goods occurs without paying taxes and suspiciously. GST sent these notices after receiving any information about the taxpayer or any hint from the other Government third parties. A notice can be known by different names like show cause notice, scrutiny notice, or demand notices, depending on the type of default or offence committed. The common reasons for receiving GST notices are taxpayers who are not registered under GST, not filling or delay in filing GST returns, short payment of GST, excess Input tax credit claims, etc. A taxpayer must respond to all the notices within the limit under the specific timeline. Any failure to respond to the notices will lead you to heavy penalties and other charges as per GST guidelines.
Reasons for receiving GST notices from the GST department:
According to Section 169 of the CGST Act, there are different means of communicating the notices under GST. Any mode can be followed as long as it is under the GST Act guidelines. Different modes of receiving notices under GST are:
If this is not found reasonable by the GST authorities, they can place a copy on the notice board of the office of the concerned officer.
The taxpayer does not need to respond to the notice sent via other methods except than these modes.
Any response to the GST notices can be done through the online portal of the GST. A taxpayer can use the digital signature for verification purposes. If the taxpayer doesn’t respond to the GST notice on time, she/he has to pay a penalty according to the GST law.
A taxpayer can hire professional chartered accountant services to respond to the GST on time and in the right format. The chartered accountant can also talk to the GST authorities on your behalf.
According to the GST law, the maximum late fee is Rs 10,000 up to May 2021. The Government can charge Rs 5,000 for each return filing.
Login to the GST portal with ARN. Go to navigate services>refunds>track application status and enter ARN. Select the Update Bank Account button.
If you have purchased or sold any goods, then file the returns. You can ask the Assessing Office to cancel your GSTIN from that particular month to save the GST penalty.
You can submit the response of the GST notices online on the GST portal. For authorization, a taxpayer can use a digital signature. Pay and clear all the dues as per the GST notice.
A quick guide on the different types of notices that can be received by the taxpayers, action to be taken by such taxpayers and time limit to respond to notice is available below:
|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 or GSTR-3B or GSTR-4 or GSTR-8||File the particular GST Returns, that is yet to be filed along with late fees for the delay and interest on the GST liability, if any||15 days from the date of receiving notice||Tax is assessed to the best judgment using the information available with the department. The penalty will be applicable of Rs. 10,000 or 10% of the tax due, whichever is higher.|
|2||CMP-05||Show cause notice – Questioning the eligibility to be a composition dealer||Must justify reasons as to why the taxpayer should continue to be eligible for the composition scheme||15 days of receipt of the notice||The penalty stipulated under section 122 and order in CMP-07 denying the benefit of composition scheme|
At the time of verifying the application for GST registration, a notice can be sent requiring the clarification for the information provided in the application or documents needed for verification. Also, the same form
for the notice is applicable for amendment of GST registration
|Reply letter in REG-04 with clarification or the information||Within 7 working days from the date of receiving the notice||Reject such application and inform the applicant electronically in REG-05.|
|4||REG-17||Show cause notice why should the GST registration not be cancelled for the reasons laid down in the notice||Reply letter in REG-18 with the reasons for non-cancellation of GST registration||Within 7 working days from the date of receiving the notice||Cancellation of GST registration in REG-19|
|5||REG-23||Show cause notice why the cancellation of GST registration must be revoked, for the reasons laid down in the notice||Reply letter in REG-24||Within 7 working days from the date of receiving the notice||Cancellation of GST Registration will be revoked|
In case of migration into GST by taxpayers of the VAT regime, a notice can be issued in REG-26 within the time limit prescribed, for not making application after obtaining provisional registration or not giving correct
or complete details therein
|Reply by applying in REG-26 and appear before the tax authority giving reasonable opportunity to be heard||None prescribed||Issue the cancellation of provisional registration in REG-28|
|7||PCT-03||Show cause notice for misconduct by the GST practitioner||Reply within the time prescribed in the show cause notice||Within the time prescribed in the show cause notice||Order the cancellation of the license as GST practitioner|
|8||RFD-08||Show cause notice as to why the GST refund must not be made to the applicant (taxpayer)||Reply letter in RFD-09||Within 15 days of receipt of notice||Make an order in RFD-06 for rejecting the GST Refund application|
|9||ASMT-02||Notice for Seeking Additional Information for provisional assessment under GST||Reply in ASMT-03 along with documents||Within 15 days from the date of service of this notice||Application for provisional assessment may be rejected|
|10||ASMT-06||Notice for seeking additional information for Final assessment under GST (for those who applied for provisional assessment)||Reply in 15 days of receipt of the notice||Within 15 days from the date of receipt of this notice||ASMT-07 can be passed without considering the views of taxpayer being assessed|
Scrutiny notice -Notice for intimating discrepancies in the GST return after scrutiny along with tax, interest and any other amount payable in relation
to such discrepancy, if any
|Reply in ASMT-11 giving reasons for discrepancies in the GST returns||Within the time prescribed in the show cause notice or a maximum time of thirty days from the date of service of notice or such deadline notified||Proceed to assess the taxpayer based on information at hand – may lead to prosecution and penalty|
|12||ASMT-14||Show Cause Notice for assessment under section 63- reasons for conducting the assessment on the best judgment basis||Reply in written form and appear before the GST authority issuing the notice||Within 15 days of notice||Assessment order in ASMT-15, may not be favouring the assessee|
|13||ADT-01||Notice for conducting audit by Tax authority under Section 65||Attend in person as directed in the notice or produce records||Within the time prescribed in the notice||If not, it is presumed that taxpayer does not possess books of accounts and proceedings will be initiated|
Notice under section 108 issued to the taxpayer by the revisional authority before passing the revision order of appeals, giving the opportunity of being heard. Order of revision is usually passed to fix errors in order
for appeals passed under section 108
|Reply within the prescribed time and/or appear before the GST authority passing the order of revision on a given date and time||Within 7 working days from the date of service of the notice||The case will be decided ex parte on the basis of available records and on merits|
|15||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, proceedings may be initiated by the Directorate of anti-profiteering. All interested parties will get a notice
asking for more details.
|Cooperate in the proceedings and provide evidence, if any||As may be specified in the notice||Proceedings will be initiated ex parte on the basis on available evidence.|
|16||DRC-01||Show cause Notice for Demand of Tax- Is issued for demanding tax paid shortly or not paid with or without an intent to defraud. It is served along with a statement of details in DRC-02||
Reply in DRC-03 for paying the amount of tax demanded in the notice along with Interest and penalty*, if any applicable. Use DRC-06 to reply to the show cause notice *Note: Where no fraud is committed, the penalty is
chargeable only if payment is made beyond the thirty days time limit
|Within 30 days of receipt of the notice||Order can be passed with higher penalty or prosecution- within three years from the due date of annual returns for the particular financial year for which tax is demanded|
|17||DRC-10 And DRC-17||
Notice of Auction of Goods under section 79(1)(b) of the Act- Reference to the order of demand will be given, being the order for recovery through specified officer under section 79 OR Recovery through execution of
|Must be able to pay the outstanding demand as per DRC-09||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||Proceed to e-auction and sale|
|18||DRC-11||Notice to the successful bidder||Pay the full bid amount||Within the 15 days from the date of the auction||The proper officer can conduct a re-auction|
|19||DRC-13||Notice of Recovery of outstanding tax from a third person||Deposit the amount specified in the notice and reply in DRC-14||Not applicable||Deemed to be a defaulter in respect of the amount specified in the notice and can be subject to prosecution and penalties|
|20||DRC-16||Notice for attachment and sale of immovable/movable goods/shares under section 79||A taxpayer receiving this notice is prohibited from transferring or creating a charge on the said goods in any way and any transfer or charge created by you shall be invalid||Not applicable||Any contravention of the notice can invite prosecution and/or penalties|