GST Notice

Notices under GST serve as official communications from GST Authorities to taxpayers. These notices serve various purposes, including reminders of detected defaults in compliance with GST laws or requests for additional taxpayer information. They are crucial in maintaining tax compliance and ensuring the proper functioning of the GST system.

These notices may go by different names, the specific type of notice depends on factors such as the nature of the default detected or the actions required from the taxpayer. Common grounds for receiving notices include failure to register under GST when required by law, late or non-filing of GST returns, underpayment or non-payment of GST, and incorrect claims of Input Tax Credit. Upon receiving a notice, taxpayers must respond promptly within the specified timeframe.

Below are the primary reasons why GST authorities might issue notices:

  • Discrepancies between details reported in GSTR-1 and GSTR-3B lead to a scrutiny notice.
  • Variances in Input Tax Credit (ITC) claims in GSTR-3B compared to GSTR-2B/2A.
  • Failing to file GSTR-1 and GSTR-3B for over six months consecutively.
  • Mismatches in information declared on GSTR-1 and the e-way bill portal.
  • Prices are not lowering following a GST rate cut as mandated by the Central Board of Indirect Taxes and Customs (CBIC), constituting profiteering and violating consumer rights to benefit from reduced rates.
  • Non-payment or underpayment of GST, potentially leading to a show cause notice (SCN), regardless of fraudulent intent.
  • Inappropriate claims for GST refunds, with or without fraudulent intent, attracting a show cause notice (SCN).
  • Incorrect availing or use of Input Tax Credit.
  • Operating without GST registration when required and not fulfilling tax and other obligations under the GST Act.
  • Reporting inconsistencies for exports in GSTR-1, especially when shipping or export bills are lodged in ICEGATE but not reflected in GSTR-1.
  • Failure to provide required record-keeping information to tax authorities.
  • Undergoing audits conducted by tax authorities.
  • Not submitting information returns to tax authorities within the prescribed timeframe.

To navigate the process of responding to GST notices efficiently, follow these essential steps:

  • Review the Notice: Carefully read the GST notice to understand the issue or discrepancy highlighted by the tax authorities.
  • Gather Documentation: Collect all relevant documents, records, and evidence that pertain to the matter raised in the notice.
  • Access the GST Portal: Log in to the GST portal to prepare your response. Ensure you have the necessary login credentials and access rights.
  • Use Digital/E-Signature: Authenticate your submission with your digital signature or e-signature, as authorised.
  • Clear Dues: If the notice involves tax or interest dues, ensure these are paid according to the specified procedure before responding.
  • Submit Your Response: File your reply on the GST portal, attaching all necessary documentation and evidence to support your case.
  • Keep Records: Maintain a detailed record of all communications, submissions, and payments related to the GST notice for future reference.