GST Notice

Comprehensive Guide to GST Notices: Types, Reasons, and Responses

What is a GST Notice?

A GST notice is an official communication issued by the GST department to taxpayers for reasons such as non-compliance, discrepancies in returns, or any irregularities observed during scrutiny or audits.

Different Types of GST Notices Explained

GST notices are categorized based on their purpose and the forms in which they are issued. Common types include:

Notice for Non-Filing of GST Returns (Form GSTR-3A).
Show Cause Notice (SCN).
Scrutiny Notices (Section 61).
Demand Notices (Section 73 or 74).
Notice for Audit or Investigation (Section 65 or 66).
Notice for Mismatched ITC Claims (Form ASMT-10).

Why Do Taxpayers Receive GST Notices?

Taxpayers may receive GST notices for various reasons, such as:

Delayed or non-filing of GST returns.
Discrepancies between GSTR-1, GSTR-3B, and GSTR-2A.
Non-payment or short payment of tax.
Excessive Input Tax Credit (ITC) claims.
Failure to conduct proper reconciliation of transactions.

Detailed Overview of GST Notices and Required Actions

Below is a structured explanation of common GST notices, the actions to be taken, and potential consequences of non-compliance:

Key GST Notices, Their Descriptions, Actions, and Consequences

Sl. No.	Notice/Form Name	Purpose of the Notice	Action to be Taken	Time Limit to Respond	Consequences of Non-Response
1	GSTR-3A	Default notice issued to non-filers of GST returns (e.g., GSTR-1, GSTR-3B, GSTR-4, GSTR-8).	File pending GST returns along with late fees and interest.	15 days from receipt	Tax assessed based on available information, with a penalty of Rs. 10,000 or 10% of tax due, whichever is higher.
2	CMP-05	Show cause notice for questioning eligibility under the composition scheme.	Submit justification for continuing under the scheme.	15 days from receipt	Ineligibility order issued in CMP-07; penalties under Section 122 may apply.
3	REG-03	Notice for clarification or additional documents during registration or amendment.	Provide the required clarification or documents in REG-04.	7 working days from receipt	Application rejection communicated via REG-05.
4	REG-17	Show cause notice for potential cancellation of GST registration.	Submit reasons or objections in REG-18.	7 working days from receipt	GST registration canceled via REG-19.
5	REG-23	Notice issued for revocation of GST registration cancellation.	Respond and submit required details in REG-24.	7 working days from receipt	Revocation of GST registration denied.
6	REG-27	Notice regarding migration issues for taxpayers under the VAT regime.	Apply for resolution via REG-26 and attend proceedings.	Not prescribed	Provisional GST registration canceled via REG-28.
7	PCT-03	Show cause notice for misconduct by a GST practitioner.	Provide explanations and evidence against allegations.	As specified in the notice	License as GST practitioner may be canceled.
8	RFD-08	Notice for rejection of GST refund application.	Respond to the notice in RFD-09.	15 days from receipt	GST refund application rejected in RFD-06.
9	ASMT-02	Notice seeking additional information for provisional assessment.	Submit required information in ASMT-03.	15 days from notice	Provisional assessment application may be rejected.
10	ASMT-06	Notice requesting information for final assessment (post-provisional assessment).	Provide the requested details and explanations.	15 days from receipt	Final assessment conducted in ASMT-07 without taxpayer input.
11	ASMT-10	Scrutiny notice for discrepancies in GST returns.	Submit explanations or rectifications in ASMT-11.	30 days or as prescribed in notice	Assessment finalized without taxpayer input, possible penalties or prosecution.
12	ASMT-14	Show cause notice for best judgment assessment under Section 63.	Provide a written response and appear before the authority.	15 days from receipt	Adverse assessment finalized in ASMT-15.
13	ADT-01	Notice for audit by tax authorities under Section 65.	Provide requested documents or appear in person.	As specified in the notice	Presumption of unavailability of books; proceedings initiated.
14	RVN-01	Notice by revisional authority under Section 108 before revising appeal orders.	Respond or appear as directed in the notice.	7 working days from receipt	Decision made ex parte based on available records.
15	Anti-Profiteering Notice	Inquiry into failure to pass on Input Tax Credit (ITC) or reduced GST rate benefits.	Cooperate with the inquiry and provide supporting evidence.	As mentioned in the notice	Ex parte decision based on available evidence.
16	DRC-01	Demand notice for tax shortfall or unpaid GST liability.	Pay the demanded tax amount via DRC-03, or submit a reply in DRC-06.	30 days from receipt	Higher penalty or prosecution; demand recovery initiated.
17	DRC-10/DRC-17	Notice for auction of goods to recover outstanding tax dues.	Pay the outstanding dues as per DRC-09 before auction.	Not before 15 days from notice issue	Auction proceeds, and goods are sold to recover dues.
18	DRC-11	Notice issued to successful bidders in GST auctions.	Pay the total bid amount.	15 days from the auction date	Re-auction may be conducted if payment is not made.
19	DRC-13	Notice to recover tax dues from a third party (e.g., debtor of the defaulter).	Deposit specified amount and respond in DRC-14.	As specified	Third-party treated as defaulter and penalized.
20	DRC-16	Notice for attachment and sale of goods or assets under Section 79.	Do not transfer or create charges on the attached goods.	Not applicable	Penalties or prosecution for non-compliance.

Responding to GST Notices

Analyze the Notice: Understand the type of notice and the reason for issuance.
Gather Supporting Documents: Compile relevant documents such as invoices, returns, and ITC ledgers.
Draft a Reply: Address the concerns raised in the notice and provide explanations or evidence.
Timely Submission: Submit the reply within the stipulated time to avoid escalation.
Seek Professional Advice: Consult a tax professional for complex cases or legal matters.

Consequences of Ignoring GST Notices

Failure to respond to GST notices can result in:

Imposition of Penalties: Late fees, interest, and additional fines.
Blocking of ITC: Input Tax Credit may be disallowed.
Suspension or Cancellation of GST Registration: Non-compliance may lead to severe actions by tax authorities.
Prosecution: In cases involving fraud or willful tax evasion, legal action may be initiated.