Reasons for Receiving GST Notices

Reasons for Receiving GST Notices In the starting period of GST, the tax was not well strict on the taxpayer as it was a new tax for everyone. But as

Reasons for Receiving GST Notices

In the starting period of GST, the tax was not well strict on the taxpayer as it was a new tax for everyone. But as of now this easygoing era has ended and the GST department is taking strict actions against those who are not genuine in the filing of GST Returns & any other defaults.

Apart from this GST investigation wing is scrutinising the GST records to mark the defaulters and issue notices to them.

Notices under GST are communications by the GST Authorities. A notice issued depending upon the purpose or severity of default or action required from the taxpayer can be called by different names e.g. Show Cause Notice (SCN), Scrutiny Notice or Demand Notice.

GST authorities act based on any information collected on scrutinising taxpayer’s GST Returns or based on information received from another Government department/ third party like Income Tax Department. Some common grounds for receiving notices relating to defaults on the part of the taxpayers are - not registering under GST when the taxpayer is required to be registered under law, non-filing or any delay in filing of GST returns, non-payment of GST or short payment of GST, excess Input tax credit claims, ITC reversal interest or interest on GST late payment, etc.

In other cases, GST authorities send reminders to the taxpayers requiring them to comply with specific provisions of the law. A few examples are – not filing Part B of the registration form within the specific timeline, not filing desired returns on time etc.

A taxpayer must promptly act or reply to notices within the time limit specified in such notice. Any failure to do so can make lead to legal consequences for the taxpayer. In such eventuality, the authorities can proceed to impose penal provisions, including and not limited to penalty as well as prosecution.

Notices under GST

There are many reasons for receiving GST notices or intimations from the GST department. Below are some of the frequent reasons for getting GST department notices.

GST Return not filed on time

There is a penalty for late filing of GST returns viz. GSTR-1 & GSTR-3B respectively, for GSTR 3B nil return 10 for CGST and 10 for SGST and in case of tax payable Rs 25 respectively for both CGST & SGST. If you are not filing GST returns under the given stipulated time you will get notice to file a return in the given period further if you fail to file the return on time so on the tax due interest demand notice will be given by the GST department @18% pa.
As of now if you are failed to file GSTR-1 & GSTR3B for 3 months then the e-way bill is deactivated and without the filing of GSTR-1, GSTR-3B can not be filed.

Delay in filing of GSTR-1 and GSTR-3B consecutively for more than six months

If the taxpayer does not file a return for a continuous period of six months, then the GST Officer may cancel the GST registration of such a person. Before cancellation, the officer will issue a Notice seeking your clarification. You are required to reply in 7 working days, giving reasons to the officer for not cancelling your GST registration.
However, officers don’t need to initiate the cancellation immediately after the non-filing of the 6th consecutive month's return. If officers choose to initiate the procedure of your GST Registration cancellation, then your GSTIN will be suspended. Until the suspension is revoked, you can not supply any Taxable Goods.

GST Mimatch Notice for tax return mismatch or ITC mismatch

If there is a difference in GST return between GSTR-1 & GSTR-3B filed then the GST department will give notice for the mismatch.
Apart from this notice can be given for excess input tax credit claimed as compared to GSTR-2A/GSTR-2B to GSTR-3B.

GST Scrutiny Notices

GST Department regularly scrutinises the return filed on the GST portal and if there is any inconsistency found then a GST Scrutiny notice will be given. The purpose of sending this notice is to ensure that all the payments of taxes for all the outward supplies have been made.

Liable but has failed to obtain GST registration.

Any business entity which is engaged in the supply of goods and whose aggregate turnover exceeds Rs.40 lakh in normal category states and Rs.20 lakh in special category states. Any business entity which is engaged in the supply of service and whose aggregate turnover exceeds Rs.20 lakh in normal category states and Rs.10 lakh in special category states.
However, there are two special category states named Jammu & Kashmir and Assam which opted for a threshold limit of Rs.40 lakh in respect of goods NOT Rs.20 lakh AND there is a normal category state Puducherry which opted for a threshold limit of Rs.20 lakh in respect of goods NOT Rs.40 lakh.
if the above condition is fulfilled but registration is not taken then GST Department will give notice for this.

For verification of Pre-GST Claims

Taxpayers who have filed TRAN-1 for transition credit may receive notices to prove transition credit. so taxpayers should submit supportive documents like stock statements, and copies of purchase documents along with a copy of the TRAN-1 return.

Some other reasons for receiving GST Notices

• GST Refund wrongly claimed with or without the intent to defraud
• Anti-profiteering - Non-reduction of prices due to reduced GST Rates
• Information returns are required to be furnished before tax authorities, but not submitted within the time limit stipulated.

Notices issued under GST

Name of Notice (Form)	Section of Law (CGST Act/ Rules)	Description	Action to be taken	Time limit to respond	The consequences of not responding
REG-03	Rule 9(2)	Clarification is required on the information provided in the new registration application or amendment of GST registration	Reply, in form REG-04 with clarification, information and document, if any	Within 7 working days from the date of receiving the notice	Rejection of the application (inform the applicant electronically in form REG-05).
REG-17	Rule 22(1)	SCNon why the GST registration not be cancelled	Reply, in form REG-18 with the reasons	Within 7 working days from the date of receiving the notice	Cancellation of GST registration (issuance of form REG-19)
REG-23	Rule 23(3)	SCNon why the cancellation of GST registration must be revoked for the reasons laid down in the notice	Reply in form REG-24	Within 7 working days from the date of receiving the notice	Cancellation of GST Registration will be revoked
REG-27	Rule 24(3)	For cases relating to migration into GST from the VAT regime, for not making an application after obtaining provisional registration or for not giving correct or complete details therein	Reply by applying in REG-26 and appear before the tax authority giving a reasonable opportunity to be heard	None prescribed	Cancellation of provisional registration (in form REG-28)
GSTR-3A	Rule 68	Default notice to non-filers of GST returns in GSTR-1 or GSTR-3B or GSTR-4 or GSTR-8	File GST Returns along with late fees and interest, if any	15 days from the date of receiving the notice	Best judgement basis assessment by Dept. including penalty u/s 122
CMP-05	Rule 6(4)	SCN on eligibility to be a composition dealer	Necessary justification in form CMP-06	15 days of receipt of the notice	Penalty u/s 122 plus order (in form CMP-07) denying the benefit of the scheme
PCT-03	Rule 83(4)	SCN for misconduct by the GST practitioner	Necessary justification	Within the time prescribed in the SCN	Cancellation of the license as GST practitioner
RFD-08	Rule 92(3)	SCN on the rejection of GST refund made	Reply in form RFD-09	Within 15 days of receipt of the notice	Rejection order (in form RFD-06)
ASMT-02	Rule 98(2)	Additional Information for provisional assessment under GST	Reply (in form ASMT-03 along with documents	Within 15 days of the service of the notice	Application may be rejected
ASMT-06	Rule 98(5)	Additional information for final assessment under GST	Reply (in form ASMT-03 along with documents	Within 15 days of the service of the notice	Order, in form ASMT-07, may be passed ex-parte
ASMT-10	Rule 99(1)	Notice for intimating discrepancies in the GST return after scrutiny	Reply in form ASMT-11 giving reasons for discrepancies	Within the time prescribed in the SCN or 30 days from the date of service of notice	Ex-parte assessment
ASMT-14	Rule 100(2)	SCN - Assessment u/s 63 (best judgement assessment)	Appearance before the concerned authority	Within 15 days of the notice	Assessment order in form ASMT-15
ADT-01	Rule 101(2)	Notice for conducting Audit u/s 65	Attend in person and/ or produce records	Within the time prescribed in the notice	Deemed that the taxpayer doesn't possess necessary records and proceedings shall be initiated accordingly.
RVN-01	Rule 109B	Notice u/s 108 issued by the revisional authority	Reply within the prescribed time and/ or appear before the authority	Within 7 working days of the serving of the notice	Ex-parte judgement
DRC-01	Rule 100(2) & Rule 142(1)(a)	SCN for the demand of tax (served along with DRC-02)	Reply, in form DRC-06. Payment in form DRC-03	Within 30 days of the notice	The order passed with available details
DRC 10	Rule 144(2)	Notice for Auction of Goods u/s 79(1)(b)	Pay outstanding demand as per form DRC-09	As specified in the notice	Proceed with auction and sale
DRC-11	Rule 144(5) & Rule 147(12)	Notice to the successful bidder	Pay the bid amount	Within 15 days from the date of the auction	Re-auction
DRC-13	Rule 145(1)	Notice to a third person u/s 79(1)(c)	Deposit the amount specified in the notice and reply in form DRC-14	Not Applicable	Deemed to be a defaulter
DRC-16	Rule 147(1)& Rule 151(1)	Notice for attachment and sale of immovable/movable goods/shares u/s 79	Refrain from transferring/ creating charges on the assets	Not applicable	Prosecution and penalties

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