GST notices
A summary on the GST notice
This post will discuss GST Notices: What are the different types of GST notices, and how do you respond to them? Let’s look at each section in more detail:
What is Notice under GST?
Notices under GST are messages sent to taxpayers by GST authorities to remind or warn them about any errors or issues with GST compliance. Sometimes, these notices are simply requests for additional information. Authorities can send out notices for reasons such as unrecorded movements of goods or services or suspicious activity. They act on information obtained from taxpayer GST returns, other government departments, or other parties.
Several terms can describe notices, depending on the situation and severity of the issue. These terms include show cause notice (SCN), scrutiny notice, and demand notice.The main reasons for receiving GST notices are:
- Not registering for GST when required
- Not filing or delaying GST returns
- Not paying or underpaying GST
- Claiming too much input tax credit
Taxpayers must respond to these notices within the given period. Failure to do so may result in legal problems, prosecution, or penalties for purposeful negligence.
Most common reasons for GST Notices
- Mismatch in Reported Details: Differences between GSTR-1 and GSTR-3B : (Scrutiny notice)
- Input Tax Credit Differences: Differences between GSTR-3B and GSTR-2B/2A.
- Filing Delays: GSTR-1 and GSTR-3B submissions were over six months late.
- Inconsistent Declarations: The differences between GSTR-1 and e-way bill portal data.
- Profiteering: Decreasing GST rates have not led businesses to lower costs or pass on the advantages to consumers.
- Non-payment or Short-payment of Tax: Failure to pay or underpay GST, purposefully or unintentionally.
- Wrong GST Refunds: Incorrect refund claims, with or without fraudulent intent.
- Incorrect Input Tax Credit: Incorrectly claiming or using input tax credits.
- Unregistered Business: Failure to register for GST when needed and failing to pay every tax due.
- Export Reporting Issues: Inconsistencies in GSTR-1 export reporting when compared with ICEGATE information. For example, a shipping bill or export bill registered on ICEGATE but not recorded in GSTR-1.
- Record-keeping Information: Requests for information on necessary records.
- Tax Audit: Conducting audits by tax authorities.
- Missing Information Returns: Submit the required information returns within the specified time.
What are the Types of Notices under GST?
Sl. No. | Type of GST Notice | Description | How Should I Respond? | Time Limit |
1 | GSTR-3A | For taxpayers who failed to file GST returns in GSTR-3B, GSTR-4, GSTR-1, or GSTR-8. | Filing the GST returns, including the penalty and interest on the GST, if applicable. | 15 days after receiving the notice |
2 | CMP-05 | A Show Cause Notice (SCN) was issued about the taxpayer’s eligibility to be a composition dealer. | Responding to CMP-06, supporting the taxpayer’s ability to be a composition dealer | 15 days after getting the SCN |
3 | REG-03 | Issued to the individual throughout the GST registration, application, and verification process, requiring clarification of the information provided in the application and supporting documentation. The GST registration can be modified using the same notice form. | Clarification of information provided via a reply letter in REG-04 | 7 days after receiving the notice |
4 | REG-17 | SCN asks why the taxpayer’s GST registration was not cancelled for the reasons specified in the notification. | Respond by filing a response letter in REG-18 and justifying why the GST registration should not be withdrawn. | 7 days after receiving the notice |
5 | REG-23 | SCN seeking clarification regarding the notice’s stated grounds for the termination of the taxpayer’s GST registration should remain | Reply with a letter in REG-24 | 7 days after receiving the notice |
6 | REG-27 | If a taxpayer fails to file an application after getting provisional registration or does not include complete or correct information in it, a notification may be issued within the time limit provided in REG-26 for the transfer of taxpayers from the VAT to the GST system. | Revert by applying in REG-26 and appearing before the GST authorities while giving reasonable notice of your attendance. | None |
7 | PCT-03 | Show Cause Notice for Misconduct by GST Practitioner | Respond within the time period specified in the notice. | As noted in the SCN |
8 | RFD-08 | SCN asking why GST is not refundable to the taxpayer. | Revert through the RFD-09 reply letter | 15 days after getting the SCN |
9 | ASMT-02 | Notice asking for further data to complete a GST provisional assessment. | Reply in ASMT-03 with the documentation necessary. | 15 days after getting the SCN |
10 | ASMT-06 | This notice is provided to applicants of provisional assessments to request more information to complete the final GST assessment. | Respond within 15 days of receiving the notice. | 15 days after receiving the notice |
11 | ASMT-10 | Discrepancies in previously inspected GST returns, as well as any appropriate tax, interest, or other amounts associated with the mismatch. | Respond to ASMT-11 indicating the reasons for the differences in GST returns. | Within the time limit specified in the notice, or within 30 days after receiving the notice. |
12 | ASMT-14 | Show Cause Notice for assessment under Section 63, together with reasons for the same based on best judgement. | Reply in writing, then appear before the GST authority. | 15 days after getting the SCN |
13 | ADT-01 | Notice of a GST authority’s intention to conduct an audit by Section 65 | Appear in person as specified in the notice, or show the necessary documents. | As per the time limits specified in the notice |
14 | RVN-01 | Before the revision order of appeals is issued, the taxpayer may get notice from the relevant body. A revision order is typically issued to address errors in appeal rulings granted under Section 108. | Reply within the specified time frame, and/or appear before the GST authority that has passed the modification order on the specified date and time. | 7 working days after receiving the notice |
15 | Enquiry Notice by Directorate of Anti-profiteering | When a supplier fails to pass on an ITC or reduced GST rates to the supplier, all relevant parties are notified to provide additional information. | Collaborate in proceedings and provide all the evidence required. | As stated in the notice |
16 | DRC-01 | Show-Cause Notice given for seeking recently paid or unpaid taxes, with or without fraudulent purpose. Delivered together with a detailed statement in DRC-02. | Respond to the notification in RDC-03 and pay the appropriate tax amount, together with any applicable interest and penalties (if no fraud has occurred, the only penalty will be charged if the payment is received beyond the deadline). If not, reply to the SCN with the DRC-06. | 30 days after receiving the notice |
17 | DRC-10 & DRC-17 | This notification refers to the demand order, which is an order for recovery through the designated officer under Section 79, or recovery by executing the decree. | Pay the remaining demand as per form DRC-09 | As defined in the notification sent prior to the transaction. The auction or bid cannot end earlier than 15 days after notification. |
18 | DRC-11 | Issued to the successful bidder | Full payment for the bid amount | Within 15 days of the auction |
19 | DRC-13 | Issued to recover the remaining tax from a third party. | Pay the amount specified in the notice and react in DRC-14. | NA |
20 | DRC-16 | Issued for attachment and sale of movable and immovable goods/shares under Section 79. | Taxpayers may not transfer or charge for any of the aforementioned products. Any produced transfer or charge will be invalid. | NA |
Valid Modes of Sending GST Notices
Section 169 of the CGST Act outlines the acceptable methods of communicating notices under GST. Notices sent by any other means are not legally valid. Taxpayers should understand the following methods for receiving notices:
- Hand Delivery: Directly to the taxpayer or their representative in person or by courier.
- Registered or Speed Post: Sent to the taxpayer’s last known business address, with an acknowledgement of receipt.
- Email: The system automatically sent the email to the registered email address.
GST Portal: Once logged in, they are available on the portal. - Newspaper Publication: The regional newspaper circulated in the taxpayer’s last known area published the notice based on their residential address
- Posting Notice: If all other methods fail, post the notice in a prominent location at the last known business or residence address. If posting there isn’t possible, then as a last resort, put the notice on the notice board of the responsible officer’s office.
Taxpayers don’t have to act on notices received through other methods not specified by GST law.
Reply to GST Notices
The GST portal allows you to reply to GST notices online. A taxpayer can utilise the digital signature or e-signature of the authorised personnel of that taxpayer or himself. If tax and interest payments are due, they must be paid in the proper form and manner. After payment, send the response letter in the necessary format to the tax authority issuing the notice.
If a taxpayer fails to respond to GST notices within the time limit, they will face penalties and further procedures under GST law.
A Letter of Authorisation allows a taxpayer to pass on the handling of GST notices to a representative or a practising chartered accountant. This letter authorises the representative to respond to GST notices and act on the taxpayer’s behalf.
Consequences of Non-Response to GST Notices
Taxpayers can respond to GST notices online with digital or electronic signatures. They must pay past-due taxes or interest under the GST Act and submit the necessary paperwork to the issuing authorities. It would be best to stick to the time limits for filing clarification.
If taxpayers fail to reply to a GST notification within the specified time frame, they will face penalties and additional charges under the GST Act of 2017.
Taxpayers can authorise a representative or a chartered accountant to handle GST notifications through an authorisation letter.
We have completed our blog post about GST Notices. If you have any further questions or concerns, please share them in the comments space.
FAQs
1. Is GSTR 3A a GST notice?
Ans: The GST authorities issue a GST default notice, called GSTR 3A, to taxpayers who haven’t filed their GSTR-1, GSTR-3B, GSTR-4, or GSTR-8 returns.
2. How can I check if there are any GST notices online?
Ans: To view GST notices online, log into your GST account through the GST portal and then go to Services > User Services > View Notices and Orders.
3. What is the time limit for responding to a GST notice?
Ans: Each type of GST notice has a time limit that typically runs from 7 to 30 days after you receive the notice.
