NOTICES UNDER GST

CMA Manmohan Daga

Practicing Cost Accountant

Background the part of the taxpayers are - not registering under

GST when otherwise required under law, non-filing

A
s per the Cambridge English Dictionary, or any delay in filing of GST returns, non-payment of
“Notice” means ‘to see or become conscious of GST or short payment of GST, excess Input tax credit
something’; ‘to bring someone to the attention claims, etc.
of’; ‘information or a warning given about something
that is going to happen in near future’. In other cases, GST authorities send reminders to the
taxpayers requiring them to comply with specific
With the structure of GST legislation being centred provisions of the law. A few examples are – not filing
around self-assessment and self-certification by the Part B of registration form within the specific
taxpayer, and with the focus on procedure-based timeline, not filing desired returns on time etc.
legislation, it was important for the Government to
bring out provisions of law to seek both proactive A taxpayer must promptly act or reply to notices
and reactive attention of the taxpayer in matters within the time limit specified in such notice. Any
relating to compliances. With focus on e-governance failure to do so can land the taxpayer in a legal soup.
and digitalisation, the need to have these In such eventuality, the authorities can proceed to
incorporated in the system was also the need of the impose penal provisions, including and not limited
hour. Ability, Agility and Accuracy were the 3 Aces to penalty as well as prosecution.
required.
Notices under GST
In order to achieve this, the overall structure
underwent a revamp to include not only inform the Some of the frequent reasons of receiving GST notice,
taxpayers of the defaults, but also sending reminders - Liable but has failed to obtain GST registration.
to caution taxpayersof any default being noticed. It - Delay in filing of GSTR-1 and GSTR-3B
also included cases where regular information was consecutively for more than six months
to be sought from the taxpayers. - Mismatch in details reported between GSTR-1
& GSTR-3B
Provisions of the Law - Inconsistent declaration in GSTR-1 and e-way
bill portal
Notices under GST are communications by the GST - Differences in Input tax credit claims made in
Authorities.A notice so issued, depending upon the GSTR-3B vis-a-vis GSTR-2A
purpose or gravity of default or action required from - Non-payment of GST liability/ short-payment
the taxpayer, can be called by different names e.g. of the tax with or without the intent to defraud
Show Cause Notice (SCN), Scrutiny Notice or - GST Refund wrongly claimed with or without
Demand Notice. the intent to defraud
- Anti-profiteering - Non-reduction of prices due
GST authorities act based on any hints collected on to reduced GST Rates
scrutinising taxpayer’s GST Returns or based on - Information return required to be furnished
information received from another Government before tax authorities, but not submitted within
department/ third parties. A few common grounds the time limit stipulated.
for receiving notices relating to lapses/ defaults on

Following is the list of Notices as issued under the GST laws.

Sl. Name of Section of Description Action to be Time limit to Consequence of

No. Notice Law (CGST taken respond not responding
(Form) Act/ Rules)
1 REG-03 Rule 9(2) Clarification requiredon the Reply, in form Within 7 Rejection of the
information provided in the REG-04 with working days application
new registration clarification, from the date (inform the
application or amendment information of receiving the applicant
of GST registration and document, notice electronically in

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 if any form REG-05).
2 REG-17 Rule 22(1) SCNon why the GST Reply, in form Within 7 Cancellation of
registration not be REG-18 with working days GST registration
cancelled the reasons from the date (issuance of form
of receiving the REG-19)
notice
3 REG-23 Rule 23(3) SCNon why the cancellation Reply in form Within 7 Cancellation of
of GST registration must be REG-24 working days GST Registration
revoked for the reasons from the date will be revoked
laid down in the notice of receiving the
notice
4 REG-27 Rule 24(3) For cases relating to Reply by None Cancellation of
migration into GST from applying in prescribed provisional
VAT regime, for not making REG-26 and registration (in
application after obtaining appear before form REG-28)
provisional registration or the tax
not giving correct or authority
complete details therein giving
reasonable
opportunity to
be heard
5 GSTR-3A Rule 68 Default notice to non-filers File GST 15 days from Best judgement
of GST returns in GSTR-1 or Returns along the date of basis assessment
GSTR-3B or GSTR-4 or with late fees receiving by Dept. including
GSTR-8 and interest, if notice penalty u/s 122
any
6 CMP-05 Rule 6(4) SCN on eligibility to be a Necessary 15 days of Penalty u/s 122
composition dealer justification in receipt of the plus order (in form
form CMP-06 notice CMP-07) denying
the benefit of the
scheme
7 PCT-03 Rule 83(4) SCN for misconduct by the Necessary Within time Cancellation of the
GST practitioner justification prescribed in license as GST
the SCN practitioner
8 RFD-08 Rule 92(3) SCN on rejection of GST Reply in form Within 15 days Rejection order (in
refund made RFD-09 of receipt of form RFD-06)
notice
9 ASMT-02 Rule 98(2) Additional Information for Reply (in form Within 15 days Application may
provisional assessment ASMT-03 along of the service be rejected
under GST with of the notice
documents
10 ASMT-06 Rule 98(5) Additional information for Reply (in form Within 15 days Order, in form
final assessment under GST ASMT-03 along of the service ASMT-07 may be
with of the notice passed ex-parte
documents
11 ASMT-10 Rule 99(1) Notice for intimating Reply in form Within the Ex-parte
discrepancies in the GST ASMT-11 time assessment
return after scrutiny giving reasons prescribed in
for the SCN or 30
discrepancies days from the
date of service
of notice
12 ASMT-14 Rule 100(2) SCN – Assessment u/s 63 Appearance Within 15 days Assessment order
(best judgement before the of the notice in form ASMT-15
assessment) concerned
authority
13 ADT-01 Rule 101(2) Notice for conducting Audit Attend in Within the Deemed that the
u/s 65 person and/ or time taxpayer doesn’t
produce prescribed in possess necessary
records the notice records and
proceedings shall
be initiated
accordingly.

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14 RVN-01 Rule 109B Notice u/s 108 issued by Reply within Within 7 Ex-parte
revisional authority prescribed working days judgement
time and/ or of the serving
appear before of the notice
the authority
15 DRC-01 Rule 100(2) SCN for demand of tax Reply, in form Within 30 days Order passed with
& Rule (served along with DRC-02) DRC-06. of the notice available details
142(1)(a) Payment in
form DRC-03
16 DRC 10 Rule 144(2) Notice for Auction of Goods Pay As specified in Proceed with
u/s 79(1)(b) outstanding the notice auction and sale
demand as per
form DRC-09
17 DRC-11 Rule 144(5) Notice to the successful Pay the bid Within 15 days Re-auction
& Rule bidder amount from the date
147(12) of auction
18 DRC-13 Rule 145(1) Notice to a third person u/s Deposit the Not Applicable Deemed to be a
79(1)(c) amount defaulter
specified in the
notice and
reply in form
DRC-14
19 DRC-16 Rule Notice for attachment and Refrain from Not applicable Prosecution and
147(1)& sale of immovable/movable transferring/ penalties
Rule 151(1) goods/shares u/s 79 creating charge
on the assets

Mode of sending GST Notices Closing the loop

Section 169(1) of the CGST Act, 2017 states the With the emphasis on reduction in documentation
different means of communicating the notices by the (in physical paper form) through digitalisation and
Department. The notice, so issued, may be sent to the reducingpersonal interaction with Department, the
taxpayers through, GST system has been designed so that all replies to
the GST notices can be submitted online on the GST
- Hand-delivered either directly or by a portal.
messenger,including by a courier, to the
taxpayer or his representative (manager, Where the notice issued warrants payment of tax
advocate, family member etc.) and interest, payment of such liability in the
- By registered post or a speed post or a courier requisite form and manner is a prerequisite. After
with an acknowledgement due, addressed to such payment, the reply letter in requisite form,
the last known place of the business of the along with documents, if any, must be submitted
taxpayer. before the tax authority who sent notice.A taxpayer
- Communication to the email address provided can use the digital signature or e-signature of the
at the time of registration, as amended from authorised personnel of such taxpayer or himself to
time to time. file such reply.
- Making it available on the GST portal after
logging in. A taxpayer can also authorise another representative
- By publication in a regional newspaper being to look into the matters related to GST notices. He
circulated in the localityof the taxpayer based can do so, by issuing Letter of Authorisation under
on the last known residential address. GST. GST authorisation letter gives the power of
- If none of the above means is used, then by replying to GST notices by another representative
affixing it in some prominent place at his last and taking action on behalf of him.
known place of business or residence. If this is
not found as reasonable by the tax authorities, In case the taxpayer receiving the GST notices does
they can affix a copy on the notice board of the not reply within the stipulated time limit, he shall be
office of the concerned officer or authority as a liable for penalties, which may include prosecution,
last resort. and further proceedings as per the provisions of the
GST law. So, it is always advisable to be on the ‘right’
Thus, the taxpayer need not act upon the notice or side of the law so that one is not ‘left’ out.
communication if it is received in any other modes
apart from what is notified by GST law from time-to-
time.

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