Reply to GST Notice

GST Notice

Notices under GST are communications by the GST Authorities. These are sent to the taxpayers specifically to remind or caution them of any defaults being noticed, specifically for not following the GST laws. In other cases, notices can be sent out just to collect more information from the taxpayer. Few cases where tax authorities send out notices are – where any movement of goods/ provision of services occurs without coming under tax lens or taxpayers operate suspiciously.

A notice can be called by different names like show cause notice (SCN), scrutiny notice or the demand notices, depending upon each case- the purpose or gravity of default or action required from the taxpayer.

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Common Reasons for GST Notice

Mismatch in details reported between GSTR-1 & GSTR-3B: scrutiny notice.

Differences in Input tax credit claims made in GSTR-3B vis-a-vis GSTR-2A.

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

Inconsistent declaration in GSTR-1 and e-way bill portal

Non-reduction of prices due to reduced GST Rates with effect from the date notified by CBIC. Thereby, a default is committed by taxpayer (seller) for non-passing of the benefit of reduced prices (or GST rates) to the ultimate consumers. The practice is known as profiteering. Several anti-profiteering measures are taken by GST authorities to address the default.

Non-payment of GST liability (tax) or the short-payment of the tax with or without the intent to defraud: show cause notice (SCN)

GST Refund is wrongly made with or without the intent to defraud: show cause notice (SCN)

The Input tax credit is wrongly availed or utilised.

Where a business is liable but has failed to obtain GST registration and not discharged the tax and other liabilities under the GST Act

Inconsistencies in reporting of Exports in GSTR-1 with information available on ICEGATE. For example, Shipping Bill or the Bill of export lodged on ICEGATE but not reported in GSTR-1

For furnishing any information related to records to be maintained by a taxpayer

Conduct of the audit by tax authorities

Where information return was required to be furnished before tax authorities, but not submitted within the time limit stipulated.