With Goods and Services Tax (GST) law getting older and more stringent, now a days it is certainly being marked that there is a substantial increase in the number of GST notices getting issued by the GST department. Article mainly focused on the Notice under GST possible manners. Types of forms used for issuing GST notice.
Why GST Notices issued?
- Failure of obtaining GST registration;
- Delay in payment of tax or short payment of tax;
- Delay in filing of GST returns;
- Mismatch of input tax credit figures as detailed in GSTR-3B vs auto-reflected in GSTR-2B;
- Mismatch of output liability figures as detailed in GSTR-1 vs GSTR-3B;
- Claiming ineligible refund; etc.
There is also a huge hue and cry in the market with regard to the issuance of cryptic GST notices intimating cancellation of GST registration or blocking of an input tax credit of the recipient on account of default on the part of the supplier.
With numerous amounts of changes both in the law and on the GST portal, slowly and steadily, the registered person is now getting used to the GST compliances. However, amidst the said adjustment, the receipt of the GST notice is making the life of the registered person noxious.
The present article briefs about various means of communication of GST notices; different forms used for different types of notices and possible manners of replying to the GST notices.
Notice under GST : Communication of GST Notices
Provisions of section 169 of the Central Goods and Services Tax Act, 2017 lists down the different means of communication of GST Notices. The same are highlighted hereunder –
- By giving/ tendering it directly/ by a messenger (including a courier) to the addressee/ taxable person/ manager/ authorized representative/ advocate/ tax practitioner holding authority/ person regularly employed/ any adult member of the family;
- By registered post/ speed post/ courier with acknowledgment due at the last known place of business/ residence of the taxpayer;
- By sending the communication to the e-mail address provided at the time of GST registration or as amended;
- By making it available on GST common portal;
- By publication in the newspaper which is being circulated in the locality where the taxable person/ person was last known to reside/ carried on the business.
Notably, if none of the above modes of communication is practicable. Then, the following mode can be applied –
- By fixing it on some conspicuous place at the last known place of business/ residence; or
- Lastly, by fixing it on the notice board of the office of the concerned officer/ authority who has passed such decision/ order or has issued such notice/summons under GST.
Notice under GST : Forms used for issuing different types of notices
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Based on the types of a taxable person as well as the type of default, show cause notice under GST are issued in different forms. The same is briefly explained hereunder –
Forms used for issuance of notice | Description |
|---|---|
Form GST REG-03 | Notice issued for seeking any additional information or clarification or documents relating to GST registration application or amendment application. |
Form GST REG-17 | Notice issued proposing GST registration cancellation notice. |
Form GST REG-23 | Notice issued proposing rejection of revocation of GST registration. |
Form GSTR- 3A | Notice issued to the taxpayers who have failed to furnish GST returns on time. |
Form GST CMP- 05 | Notice issued to the composition scheme dealer with regard to eligibility to be a composition dealer. |
Form GST PCT-03 | Notice issued to GST practitioner for misconduct proposing cancellation of GST practitioner’s licence |
Form RFD-08 | Notice issued for rejection of the GST refund process application. |
ASMT-02 | Notice for seeking additional information/ clarification/ documents for provisional assessment. |
ASMT-06 | Notice for seeking additional information/ clarification/ documents for final assessment. |
ASMT-10 | Notice issued under section 61 of the Central Goods and Services Tax Act, 2017 read with rule 99 of the Central Goods and Services Tax Rules, 2017 intimating discrepancies in GST return after scrutiny along with tax, interest and penalties under GST. |
ASMT-14 | Notice issued under section 63 of the Central Goods and Services Tax Act, 2017 intimating reasons for conducting the assessment on the best judgement basis. |
GST ADT-01 | Notice for conducting an audit by the tax authorities under section 65 of the Central Goods and Services Tax Act, 2017. |
GST RVN-01 | Notice issued under section 108 of the Central Goods and Services Tax Act, 2017 to the taxpayer by the revisional authority. |
DRC-01 | Notice issued for demanding tax shortly paid or not paid with or without an intention to defraud. |
DRC-10 | Notice for auction of goods under section 79(1)(b) of the Central Goods and Services Tax Act, 2017. |
DRC-11 | Notice to the successful bidder |
DRC-13 | Notice issued to a third person under section 79(1)(c) of the Central Goods and Services Tax Act, 2017. |
DRC-16 | Notice seeking attachment and sale of movable or immovable goods/ shares under section 79 of the Central Goods and Services Tax Act, 2017. |
How do you respond to notice under GST
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As seen above, different GST notices are being issued for different issues. Hence, there cannot be a specific proforma for replying to the same. Different issues need to be tackled differently.
Importantly, without getting jumpy, on receiving the notice under GST, it is advisable to follow the below mentioned steps for GST notice reply.
- Thoroughly read up the entire show cause notice from top to bottom;
- Figure out the main issues based on which the show cause notice is issued;
- Prior to drafting a suitable reply, precisely carry out the following home work –
- Set up the main issue of the notice in your mind;
- Form a primary option on whether the allegations are genuine or not;
- In case the allegations are genuine and you agree to the same, do as directed in the notice and clear up the matter;
- However, if the allegations are not genuine and you don’t agree with the same, you need to make yourself ready with all the facts and figures;
- Set out all the relevant documents supporting your point;
- If needed, take an expert opinion on the same.
- Once the above steps are clear, you can easily draft the reply. However, in case of complex matters, filing a reply with the help of an expert is always advisable.
Thus, the basic thumb rules for replying to the show cause notices under GST are summarized hereunder –
- Read the notice;
- Figure out the issue;
- Form a primary opinion;
- Get ready with all the facts and figures;
- Take expert opinion, if needed;
- Draft and submit a suitable reply.
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